Posted on 09/16/2010 7:57:56 AM PDT by SeekAndFind
The extend and pretend approach of the Treasury Department, through HAMP, has reached its end, and foreclosures are surging higher than ever.
Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
There are enough homes in delinquency that the properties entering the system slowing will have no material effect on foreclosures increasing. And that shows no signs of abating. Whats more, banks are basically forbearing the first couple months of delinquency, artificially lowering the number of homes entering foreclosure because they dont want to initiate the process.
Less trial modifications are being taken up through HAMP, as word of mouth spreads that the program is less than helpful at best and a predatory lending scheme at worst. The banks remain reluctant to do affordable workouts, especially with second liens, because theyd rather pretend the profits from them are on the books. Theyd rather get something for the homes by returning them to the market, even though sales are at their lowest in 15 years. This giant shadow inventory just becomes a loss leader month after month for the banks, as more people just decide not to pay and take the risk of playing foreclosure roulette.
(Excerpt) Read more at news.firedoglake.com ...
RE: I bought at 5.5% fixed. Im very happy.
You realize of course that interest rates today are much less than that...
Due to losing our jobs, a year ago, we called Chase right away and they told us not to pay and they would do a loan modification. They never got back to us but I kept calling them, and sent us a foreclosure notice. Then I called and they changed that and said we did not have to pay for three months, followed by a trial period making $50 payments for three months, followed by another three month trial of $150 per month payments, and finally three more payments of $350 per month which we paid.
Then, in August, they transferred our mortgage to a company called IBM out of California. We did the paperwork, etc. and we have never heard from them.
I finally wrote to them and said we were unable to make the September payment and still nothing.
Our balance is $155k but the house would probably only sell for about 98k.
I am sure they are really behind these days with regard to foreclosures and kicking people out. I have heard of a few people who have been in their homes over a year and the house has not been sold.
Perfect synopsis, Ab! I know too many families with no business owning a home, let alone a $450K home, who are now under water and fighting foreclosure.
Yes I do. I wasn’t bragging, just mentioning it.
My manager recently bought a home at 4.3%, but I’m not going through the rigamarole to refi when I’m happy with the current rate. If it was 3.0% or lower, I might consider it. 5.5% is much lower than what my mother and father paid on their home.
From what I’ve heard, most of these banks aren’t returning calls. They’re so inundated with foreclosures that they can’t answer everyone’s phone call. Your best bet would be to go to a branch and speak to a mortgage manager. That’s worked for a couple of my friends.
housing cost 2-2.5 times yearly income. case closed.
“Anyone want to form an investment group with me?”
////////////////////////////////////////////////////////////
I could maybe sell enough scrap metal to raise fifty dollars.
“Anyone want to form an investment group with me?”
////////////////////////////////////////////////////////////
I could maybe sell enough scrap metal to raise fifty dollars.
“Obama is the new FDR. High unemployment for as far as the eye can see.”
////////////////////////////////////////////////////////////
Which means that IF the nation survives then fifty years from now “learned” pundits with ivy league doctorates will argue endlessly about who was the greatest of all presidents FDR or BHO. I am getting sick of that sort of insanity.
Chase already turned our loan over to this IBM company who works as a collection company and also a loan modification modification company.
We received the notice about that after the fact.
I apologize, I don’t have any experience in that business, but it sounds like you got flung around like an 8-year-old on a swing with a broken rope.
Are you at least stabilized now, or are you still fighting them over all of it?
I live in a condo community and the prices have fallen through the floor. They cannot sell these places because they'll only consider you if you walk in with cash. I'm seeing a movement afoot amongst my neighbors now... people are buying the place three units over and walking away from their own. It's happening more and more often. But you do have to have 100% cash. So people are cashing out IRAs, one of my neighbors cashed in a life insurance policy. The prices are getting so low that it's becoming feasible.
I have fought for over a year because they mishandled the entire thing. We are still unemployed and unemployment stopped a month ago.
I don’t have it in me to continue as my priority is to get a job and that is taking so much out of me. Geesh, when I finally do land a job, I will be mentally and physically exhausted. It really does mess you up emotionally. It used to be I could find a job within one week but not anymore.
We’ll just have to move into an apartment if that is what is meant to be but I need a job first that will pay rent and utilities.
Oops, did I say life insurance policy? It was some kind of insurance policy....I don’t think you can cash in life insurance unless you kick the bucket. LOL!
Took me almost 6 months to find a job last time I was out of work, and I identified that period of time as when I became an alcoholic. I know it is cliche, but I feel your pain.
Good luck on the job hunt. It is absolutely nasty out there, and I thank the Lord daily for being employed.
Times are so bad even bank robbers are giong out of business.
I learned that as a child, there used to be a lot of old farm houses that sat high off the ground with no underpinning, with no subfloor, just a board floor, tin roof, no attic insulation, no wall insulation, clapboard wood siding and a “breezeway” hall down the center with doors opening to the outside on the ends. Those old houses would stand forever as long as someone lived in them to keep some heat going in the winter and open windows for ventilation in the summer, they needed very little maintenance but as soon as they were allowed to sit empty they fell apart very rapidly. Dust would infiltrate and accumulate, holding moisture that rotted the wood, squirrels would make nests in the houses and soon they fell.
“Ive made the point before that unless borrowers are able to finance, the housing market wont find its bottom until buyers can afford to purchase with cash.”
////////////////////////////////////////////////////////////
If we drop down to cash prices houses will be VERY cheap!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.