We are kept from proper information on the “foreclosure shadow inventory” that these “Pottersville” type home loan service companies keep in secret and are growing at alarming rates. The foreclosure rate for some counties in California are beyond the scope of reality with places, such as Nevada (Las Vegas), being 1 in 9 homes in foreclosure status, a close second.

“Oh it’s your own damn fault!” Grampa Bigbucks says. “You should have saved your money!” Guess what dickhead, I beg to differ! Soon your $350,000.00 home will (in a year) become less than $150,000.00. As this continues (problem with mortgage loans) interest rates will climb, insurance rates will skyrocket, job loss will increase, stress on existing labor will result in poor product and workmanship, food costs will rise, tax based revenue will fall, (at unheard of staggering amounts) and more crime will increase, and the $150,000.00 “palace of greed” will soon be worth $50,000.00 as the upcoming “Economic Armageddon Of All Time” finally throws everyone in the same boat. A view form the either side looking downward will see all of America “underwater.” This EAOAT as I, the prognosticator of the future of America, Steve Puchetarian, have predicted here first.

Now then, I am an artist by nature, a fair and level headed guy, AND yes negative thought brings negative outcome. But that is a spiritual issue not a hard fact. To ignore the truth is a stick your head in the sand approach. I don’t mean to be negative, in fact, I am hoping there is a fair chance this will not happen. But hopein don’t make it so…I am sorry folks. If we ALL do not pitch in together to force our government to make the banks clean up this out of control Financial Doomsday, it will make the Depression look like a fart in a windstorm. And the idiots that can’t see this impending doom will be busy trying to shovel smoke with a pitchfork in the wind.

So, those of you who say crap like you all deserve it? First you idiots place blame in the wrong direction. Greed is a less than admirable human nature character trait, we all know this to be self evident. However, the banks are just as greedy and will soon own 1 in every 3 privately owned building structure in this country. Then the Chinese will call the bank loans due. Raise the Red flag everyone. Get used to it as it implodes our rights under common law and the result of things taken for granted, like the Bill of Rights, will become a worthless, time gone by, piece of toilet paper.

Then soon Grampa Bigbucks will walk away from his “retirement investment” with owing the realtor , the IRS, the banks (after they go back and start pursuing all who didn’t make the Mortgage Debt Relief act of 2007 timeline drop dead date) with legal action lawsuits to regain the money not availed to them any longer form the Federal Government. You know that one don’t you? The Socialistic Entitlement Government that has no answers or the foresight to see that throwing funny money at the problem just ain’t gonna work?

Our government needs to grow some good ol’ fashioned balls and make the financial institutions in this country correct the mistake they have all been involved in creating and supporting. Why do I feel that way? You remember the ads in the soon to become defunct U.S. Mail? Yeah, the ones that said you can use your inflated home equity to take a vacation, buy a car, do want you want, just accept this loan offer and we will give you such pleasure with this interest rate. Just sign here Hehehehehe…what they really meant was they would squeeze the hope out of your lives later as they decimate your faith in the future, human kindness, justice, liberty, and gain control over the laws that have kept us from what they wanted all along. They simply want it all, your money, your rights to individuality and your indebted lifelong slavery to them.

When will America wake up? This is ALL of our problem. It is like ignoring that little pain hoping it will all go away in a few days and it just gets worse. America needs to wake up and DEMAND that the Federal Government uphold the United States Constitution by correcting the tyranny of the existing financial mortgage companies as they plan and scheme to destroy America at it’s foundation and take away every single right that is every single citizens GOD’s given gift by being a U.S. Citizen.

The Government must take action and we should all require they do what we the people require they do foremost and upfront…Secure and protect our basic safety and liberty. If we don’t, the EAOAT will cause the boat we are all in to soon sink. Our money, property, self confidence, and all hope will be a thing of the past, and with it, every American value we ALL hold dear. Remember, common sense dictates that he who holds the best cards, wins the game.

God help us all. Divided we fall as one. All of us as a nation will suffer as we see our neighbors wiped out financially and morally.

Again the Federal Government needs to step up and defend the Constitution of the United States of America and demand these financial institutions led by who knows what authority and control to develop a solid plan that keeps All Americans housed and safe in this potential financial meltdown.

Remember I said it. I will be found to be quite correct. Unfortunately.

help.

I agree that house appreciation plays a major role in foreclosures, but what drove that appreciation up, up and up??????

Easy money Alan. It was every where.

Easy money=people buying more houses=prices go up=people buying houses they can’t afford, but qualify for with a licensed professional, with lender underwritten easy money=values go up higher= OH NO! NO more easy money= mass foreclosures=the US economy is crashing=REALITY

http://www.boston.com/business/globe/articles/2007/12/04/falling_prices_driving_crisis/

http://www.bos.frb.org/economic/wp/wp2007/wp0715.pdf

The same study also points out that primary driver for foreclosures ain’t rate resets but: “Second, house price appreciation plays a dominant role in generating foreclosures: homeowners who have suffered a 20 percent or greater fall in house prices are about fourteen times more likely to default on a mortgage compared to homeowners who have enjoyed a 20 percent increase. We attribute most of the dramatic rise in foreclosures
in 2006 and 2007 in Massachusetts to the decline in house prices that began in the summer of 2005. Subprime lending played a role but that role was in creating a class of homeowners who were particularly sensitive to declining house price appreciation, rather than, as is commonly believed, by placing people in inherently problematic mortgages.”

Define “deserve to be saved”. The only folks who deserve to be saved who didn’t bite too much for them to chew. Who qualified at the time for FNMA 30 year fixed but were coerced to go with land mine loan. Number of these type of borrowers is in absolute minority.

OK, now to your complex questions to challenge me on my blog. You asked me questions earlier and were polite. I answered. You then attacked me in a few different comments. Fine, who cares? Now you want me to jump through your little hoops so you can get the satisfaction of proving I\’e2\’80\’99m an ass.

I will be dammed if I do and dammed if I don\’e2\’80\’99t. How do I know you’re not Angelo Mozilo and this is some counter attack on me??? haha

Well, this is the last comment/hoop I will jump through. I feel like a rabid poodle in a Bill\’e2\’80\’99s dog show.

I would rather just report how good of a shop you have and have Bill give tips to my readers. I am sure you know more than I do, if you do in fact manage or run a loss mitigation department, but there are very few people like you and even I, that know anything about this.

This blog is for the homeowner and I don’t get into all of the complicated jargin. You know as well as I that these are complex questions. This is it, I mean it Bill\’e2\’80\’a6\’e2\’80\’a6\’e2\’80\’a6\’e2\’80\’a6..

1.\tab What is the post foreclosure redemption timeline in Michigan\’e2\’80\’a6how many months long? What is the normal reason that this redemption can be shortened?

If the property is four units or less and does not exceed three acres in size, then if the amount that remains unpaid on the loan is more than two-thirds of the original debt, then the borrower still has six months to redeem. If a property is over four units or three acres and has not been abandoned, then the time period for redemption is one year from the date of the foreclosure sale. If the property has been abandoned, and if the balance is over two-thirds of the original loan, then the redemption period is one month.

2. At what amount of arrears capitalization in a loan modification does Fannie Mae require a servicer to re-record a loan modification?

Fannie Mae has changed their recording guidelines from recording $10,000.00 to $20,000.00. Fannie went from a 108% UPB to 115% UPB limit on Mods in 2007 – and many lenders up until 2007 would not allow more than 8% capitalization Fannie has taken the level to 115 and I have seen as high as 142% on Sub Prime.

3. Why does the changes in the tax code just signed yesterday make it possible for servicers to finally fix the problems?

I haven\’e2\’80\’99t thought about it till you asked. But I would guess that it means that lenders can now book their losses now and in Moe\’e2\’80\’99s words, servicers are now crapping their pants because if they do not work with borrowers and on short sales, then now all tax liabilities will be on them and not on the borrower. This leaves less skin in the game for borrowers and more for lenders.

That\’e2\’80\’99s it Bill. No more hoops please. I need to help homeowners. Why can\’e2\’80\’99t you just help me help you or vice versa or whatever. All I want is for the homeowners that want to be saved and deserve to be saved, get saved.

Moe

Once again you show that you have no real knowledge or experience in managing and handling a default mortgage and the steps towards resolution. I didn’t say customer’s don’t ask for help…What I said was that the only time that I approve a foreclosure referral is when a customer isn’t return phone calls, has filed a BK 7 and has been discharged from their personal liability of the debt, the property has been vacated and isn’t not moving towards a resolution. If no workout is pending what other choice do we have????

Distress Customers should follow the following path to start and resolve their mortgage.

1. You must understand what type of mortgage that you have. ARM, Fixed, Option ARMS and Etc
2. What is the status of your loan. How many months past due, pre-foreclosure, active foreclosure, active foreclosure with a confirmed sale date. All of these items will go into the decision process for approval of any type of workout.
3. Who is the owner of your loan (FHA, VA, Fannie, Freddie, or MBS) This will be critical in the type of workouts that can be offered.
4. Put together the following information: hardship letter, budget form (comparing your income to expenses), two paystubs, two bank statements, and tax returns.
5. Contact your servicer and find their loss mitigation, loan resolution, home retention deaprtment…..tell them that you want to keep your house and find out the process flow for a workout.
6. Send in your package to a specific person that is assigned to your file.
7. Follow-up every other day until a decision is made. Depending on the shop this might take a few weeks. Sadly at times because of the nature of your fin. position no workout can happen. If you can’t qualify for a customer based resolution (MOD, repayment plan) than you need to look at a collateral based resolution (Short Sale, DIL). This means that you help the servicer liquidate the property via sale of the asset or deeding the property back to them.
8. Remember that your servicer doesn’t want your house. They want you current and making payments monthly (Remember that is how we make money) and that each REO is a $50,000 loss waiting to happen.

In my shop we have a saying “The best customer we will ever have is the one in the house, it is our job to keep them there.”

Moe,

Let’s test your default mortgage knowledge……..since you are a self-described workout expert

1. What is the post foreclosure redemption timeline in Michigan…how many months long? What is the normal reason that this redemption can be shortened?
2. At what amount of arrears capitalization in a loan modification does Fannie Mae require a servicer to re-record a loan modification?
3. Why does the changes in the tax code just signed yesterday make it possible for servicers to finally fix the problems?

Moe this is your chance to shine…..show that you understand the issues facing the default servicing industry and the housing market. The answers to my questions are key to the resolution of the problems and why at times we can save every customer’s loan.