I’m so sick of hearing that homeowners are in homes they cannot afford. They over speculated. They bought way above their means. They can’t be helped. Rubbish! Bullshit!
WE ARE IN THIS MESS BECAUSE OF RIDICULOUSLY TERRIBLE LENDING PRACTICES AND PREDATORY LENDING!
Without a loan for borrowers to “qualify” for then there would be no buying of home they supposedly could not afford and these lenders were dishing out these toxic loans in the millions. These lenders preyed on people with subprime credit. They would charge excessive fees and give them rates they could not afford while they pocketed yield spread premiums on the back ends of these loans. Sometime raising a rate form 6% to 8% so they could collect 2-3% in the form of secret commissions.
I believe that most all of these subprime loans were made to fail and have all the characteristics of predatory lending.
Now, homeowners are stuck in these predatory loans and they are reaching out for help to their lenders and servicers. What they find is far from help. The predators continue to feed off of the borrowers and suck what little blood (money) they have left.
So the question is, “why are lenders and servicers are not “really” cooperating and assisting struggling borrowers and modifying their loans?”
The answer is simple. GREED AND DECEPTION!
Take this quote from Nicholas Weill, chief credit officer at Moody’s:
“As far as the security is concerned, it’s only once the property is effectively sold that a loss is recorded,” “The process of foreclosure is a long process. It doesn’t’t just happen overnight.”
If lenders and servicers work with all struggling borrowers then they would have to report massive losses to investors in their mandatory quarterly earning reports. So, what they are doing is stalling and refusing to assist many homeowners because of this very reason. If they cooperate on a massive scale and modify loans and offer more short sales then the reported losses would be gargantuan. Causing their stock to go down the toilet and most likely cause them to go out of business.
The reason lenders have not yet reported significant losses, is because these losses are only recorded when loans are modified or when homes have been foreclosed and sold. Up to two years can pass between a borrower’s falling behind on payments and an auction. These loans which are backed by mortgage securities have a reservoir of excess cash so bondholders can draw upon that cash when borrowers do not make monthly payments.
The “TRUE REALITY” of the problem is not yet on the radar because many loans are just now defaulting or shortly will default. It takes time for the defaults to result in NODs and then Trustee’s Sale, and then as an REO.
This buys them time. The reason why the loans are not modifying is because the banks are not willing to mark to market. If they were to modify, they would have to take the losses immediately whereas a foreclosure could take 12-24 months to surface on the books.
Furthermore, the foreclosure may generate management and marketing fees for a subsidy.
Then you have the servicers who are in on the scam.
Servicers seem to be more interested in REO management and collecting delinquent fees then assisting homeowners. They make WAY too much cash to pass up terrorizing borrowers and making their lives lives hell, then helping them. PLAIN AND SIMPLE.
Before the dust settles, there will be some fierce legal battles over servicing related losses. Servicers also stand to lose customer goodwill and their business reputation. Customers will ultimately blame the Servicer.
What lenders and servicers are doing is buying time at the cost of the American homeowner and very likely, our nations economy. Families are being ruined. Local economies devastated.
ALL OF THIS, SO LENDERS AND SERVICERS CAN CONTINUE THE DECEPTION AND NOT REPORT THE FACTS. ALL FOR THEIR GREED AND THEIR BOTTOM LINE.
I call it, “THE GREAT AMERICAN HOMEOWNER SWINDLE” and ladies and gentleman, our whole country has been scammed and the scam continues right in front of your very eyes. Yet, we still sit here and let them do this bullshit. I am amazed that this is happening and nothing is being done to stop it.
{ 3 comments… read them below or add one }
VERY IMPORTANT POINT ! ! !
Just wanted to re-emphasize…
The two “NACAs” are different organizations.
- Paul
dpfghlww [URL=http://ljmsslne.comvhwlxpbb/URL] tglggsyu http://psivbchc.com mjmaoezt bhxbpyao
.we just need everyone to stand up and demand it. Yea, right…With Thanksgiving coming in a few days, I plan on sending this to my mortgage company as a thanksgiving card!
Thanksgiving Won’t Be The Same This Year Without A House
I love Thanksgiving. It’s always my favorite time of year. A time to surround oneself with friends, family, and four walls to help keep out the cold. Now, I know the fact that we don’t have a house might seem especially noticeable around the holiday season, since it’s kind of a McCray tradition to spend Thanksgiving indoors, but that’s no reason to be ungrateful.
Believe me, I miss living in a residence just as much as the next member of this family. I don’t know if it’s the warm feeling you get from not being on the street or the sense of comfort that only comes from having shelter from the elements. But the hard truth is, no matter how much we loved our house, the bank isn’t going to give it back. So the only thing to do now is try and have the best Thanksgiving we can without it—and if I know this family, that’s just what we’ll do.
After all, Thanksgiving is not about materialism. We don’t need a bunch of expensive store-bought decorations of pilgrims and cornucopias, or even places to hang them. 5-year-old Dylan drew a turkey on the back of a discarded pizza box by tracing his hand with my lipstick. If that doesn’t say “This is a McCray Thanksgiving,” I don’t know what does! We’ll show everyone under this highway overpass that this family isn’t going to lie around on our newspapers and feel sorry for ourselves.
Isn’t family what this season is all about? Looks to me like we’re all here—except for Karl, who ran off with that TCBY cashier and abandoned us at a service plaza just off the Ohio Turnpike. But we pulled together and overcame those hardships, and through it all our family has continued to get closer and closer in order to avoid freezing to death by the side of the road. In a way, maybe all this happened to remind us to focus on the things that really matter, like family.
We will always fondly recall sharing the Thanksgiving meal with Grandma, Grandpa, and all of our aunts, uncles, and cousins. We’re just going to have to try a little harder to remember this year, because we’re dead to them.
Look on the bright side! Who needs a roof over their heads when they’re surrounded by such wonderful memories and the good cheer of the holiday season? Just the other day, for instance, I was reminded of the rich crimson color of Aunt Jean’s delicious homemade cranberry sauce when I noticed the puddle of blood Dylan was playing in. And now that I don’t have to worry about holiday weight gain, I sure would love to find a big heaping spoonful of that sauce in the Dumpster!