According to information released in July by Lender Processing Services (LPS), fully 42 percent of all delinquent homeowners have not made a payment on their mortgage in more than a year. The average time of delinquency is 397 days, a new record[1]. Despite these foreboding numbers, though, other statistics looked brighter, with first-time foreclosure starts at nearly three-year lows and only a quarter of the new delinquent inventory being made up of first-time delinquencies.
LPS also released forecasts for judicial foreclosure states, estimating that it would take three times longer for states that require judicial foreclosures to work through their delinquent loan inventories than non-judicial foreclosure states (111 vs. 32 months).
How seriously do you think these statistics should be taken given the high drama in the world of real estate and lending politics today? Should analysts factor in that LPS is currently involved in a robo-signing lawsuit over 30,000 mortgage assignments[2] that may have spiraled out of control partly due to a lack of judicial supervision?
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[1] http://nationalmortgageprofessional.com/news26441/nearly-half-all-delinquent-homeowners-have-not-made-payment-over-year
[2] http://www.mortgagenewsdaily.com/channels/pipelinepress/08242011-lps-american-home.aspx
There’s a bigger reason for this statistic than robo-signing. I have come across many delinguent homeowners that attempted to stay no more than 60 or 90 days down. Unfortunately, at some point their lender decided to STOP ACCEPTING THEIR PAYMENTS! Bank of America is a primary culprit. This tactic should be illegal. Why would a bank do this? Is it because they first check the equity position and if there is any, they stop accepting apyments? Most of the homeowners who have had this happen DID have equity.
I am not only skeptical of anything that comes out of Lender Processing Services… if you’ve paid any attention at all to the Robo-Signing scandal… these are the guys that are STILL doing it… I believe their intentional lying to the Courts of this Nation are representative as to everything that comes out of their mouths. If they haven’t the morals-ethics to tell the truth to the Courts, why on earth would anyone believe anything that came out of them? Makes absolutely no sense to anyone but an ignoramous.
Another angle to this worth noting is that there are a variety of leftist organizations now actively organizing home mortgage holders with left-leaning perspectives to STOP making their house payments. Their publicly stated goal (the tapes have been played on radio and TV) is to serve as the catalyst for bringing down the U.S. banking system. They are actually targeting specific banks in the hope of bankrupting them. Can’t transform the U.S. into a socialist utopia without destroying capitalism, and banks are properly recognized as a critical path target in the effort. I’ve no use or sympathy for the majority of the large banking concerns. They have proven time and time again that they don’t give a darn about this nation’s welfare or its citizens. While in serious need of an attitude adjustment and philosophical transformation, I don’t relish their downfall, accellerated with great determination by the left. The consequences could prove disastrous to the nation.
In the majority of the cases the banks have told the owner
“Do not send the payment or we will not accept less that the full amount due” There is no statistic that records how many owners have been told this by their banks! Only the robo-signing bankers that cannot locate the documents that prove they even own the note or deed of trust are saying LOOK WE HAVE NOT BEEN PAID IN… MONTHS!! They are also making sure they report it to the credit agencies too! That ensures your credit will be whack if you ever want to buy anything! That way they can refuse your new application or “modification” on the basis of non-complying credit. They do not report that there is a dispute with you or that they do not have documents that prove they rightfully own the debt.
OK! Set up a joint account with your spouse + another trusted person. Deposit the payment amount into the account monthly or as often as you can in accordance with the loan agreement! The regular, timely deposit shows your ability to pay! 2 or 3 payments can be scraped together but more than that + the late fees usually is not possible, that is what the position the bank really wants you in, an amount that you cannot put together! Fight them as best you can to get your day in court! When the case or negotiations start you have something to negotiate with CASH! If you do not get the agreement that makes sense for your family budget and current value then keep the cash and look for a deal you can buy with a substantial amount of cash down! You may be able to buy back your own home at foreclosure,if it even get to that point, I do not believe it will because the bank cannot prove their “interest” in the case. DO NOT offer or volunteer the money to the bank until you have a written agreement that works for your family. Do not ever think the bank is going to become your friend. Keep the cash and start over if you have to! Do not give up!