According to Barclays Capital, at the end of July 2011 banks held 17 percent fewer REO properties than they held in September 2010[1]. This is likely due in large part to the robo-signing scandal that made headlines right around that time and the extended foreclosure timelines that have been a result. Loans are spending far more time in delinquency and foreclosure than in years prior, with many homes spending nearly a year in foreclosure before reaching REO status. Perhaps not surprisingly, judicial foreclosure states tend to have longer foreclosure timelines than non-judicial foreclosure states.
Barclays also noted that lenders and servicers are more likely to offer loan modifications in states with slower foreclosure processes and that servicers are “a little more generous in their loan modification terms in slow foreclosure states.” Do you think that this is fair?
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[1] http://www.dsnews.com/articles/banks-reo-inventories-down-by-17-2011-09-19
What does fair have to do with anything?
It is what it is, it is called business!
No
It is not fair and since I have been in and around the Mod biz since early 2007. I have seen the rise and fall. The good,the bad, and the really ugly. Yes some crooks to justify the zealots to swoop in and not save the day. The problem is how do you mod something you do not own. Your a servicer and you have forbearance to work with but you are only the servicer. Plus you sold the note 5,10 or more times and have no idea who owns it and are not going to put the man hours into it to find out. Loss Mitigations is just that loss mitigation. Plus if you the servicer, have a loss share agreement with the FDIC and you will get 80% of the origianl note price if you foreclose on the asset. Now you own it free and clear. You can hold it on the books at the old value and go borrow 3.5 times that value from the FED REserve at .25%. WHY IN THE WORLD WOULD YOU EVER WANT TO DO A MOD!!!
On top of that you are a slime bag free loader in the minds eye of the loss mitigation negotiator. You do not deserve to be in the house. YUP we here it every day form one or more banks.
Ok now let the fun begin. 2012 prediction: foreclosure city, as of November first 2011 new Federal rules say the banks only have 10 days from reciept of a full package. This is the main reason all the big boys adopted “equator”, that’s the system designed to kick you out not kick you into a loan mod of short sale. So November 1st 2011 10 days to say yes to a mod or no to a mod. Since they have never ever given a yes in 10 days. How many “NO’s” do you think we will get.
With a NO the homeowners options are:
1 DEED IN LIEU
2CASH FOR KEYS
3FORCLOSURE AND EVICTION FAST WITH ROBO SIGNING OUT OF THE WAY.
BK’S WILL SOAR the new cottage industry, Law suits will be moot.
But what do I know with all the pundents out here talking smack and looking at the mortgage meltdown from every angle but the one that exposes the trick. Thats right it’s magic and the big banks are the magician and like any good magician it is all about mis-direction. LOOK over here! OOOOOOOOOOOooooooooH MAJIC!!!