is there a quick fix to the Foreclosure Crisis?
Posted on November 12, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages, Regulations & Government | Leave a Comment
…I don’t think so! After some months off we are back to blogging, like the treasury and the government we have been busy dealing with the “mortgage meltdown”. Unfortunately quick legislation and $700 billion is probably not going to do much to help the ‘every american’, but there is help!
Yesterday the treasury announced the latest thought on helping homeowners in this national crisis we are facing. It like the other plans is heading in the right direction, yet who will it help and more importantly how fast? The latest version like the one passed in July 2008 projected to help at most 400,000 homeowners over 4 yeras (close to 3 million foreclosures coming in 2008) or this one with Fannie Mae and Freddie Mac that would only impact at best 20% of the homeowners who are “seriously deliquent” right now not the millions more that are coming and unyet reported. No we don’t need legislation, no we don’t need further bailouts, we need weeping and nashing of teeth!
That is to say when ‘Mr. Banker’ comes to terms with the fact that the government or you and me and our tax dollars are not going to bail him out of his greed then he is going to become quite negotiable in dealing with you and me and our desire to work things out to keep our homes! I mean people cry out to God when the plane is about to crash and make all kinds of promises to do good and repent, so how is this different? Let the capitalist market work it out.
Homeowners you can deal with your lender and get a loan workout done, there are options out there now. People hire companies like ours all the time for one simple reason is we gather the facts, make a plan, support it with facts and then offer the plan to the lender on an executive level. We are not emotionally or financially attached to the decision and we can make the proposal based on its actual merits to negotiate a good and fair deal for both parties. That is to say we do it as a profession, we help people in a professional systematic approach if it is good for the bank and good for the consumer then it is a good deal.
Legislation to have the many (taxpayers) pay for the greed and irresponsibility of the few or in this case the growing number of potentially duped causalties then that is not a fair win/win proposition. Let’s spend mine a your hard earned tax dollars wisely. Decisions made in a rush or on emotions are usually not our better ones.
The “Mortgage Crisis” shows its true colors as the prime mortgage foreclosures surge
Posted on August 29, 2008
Filed Under Foreclosure, Mortgages | Leave a Comment
Now what we have believe would not start in earnest until the first part of 2009 seems to be at our door step. The “Mortgage Crisis” in the prime markets. The number of prime borrowers having trouble with the mortgage payments passed sub-prime borroweres for the first time.
HOPE NOW’s monthly data shows that during July, foreclosures were initiated on 105,000 prime borrowers and 92,000 subprime borrowers. Prime foreclosure starts in July were well more than double the 51,000 recorded one year earlier, and up almost 10 percent from June; in comparison, subprime foreclosure starts in July were up 22 percent from one ago, and up 10 percent month-over-month as well.
It will be an interesting year or two, but there is help at least and yeah misery loves company so it may not just be you, but your neighbor too!
Amerifault.com just started a new service helping borrowers negotiate the short sale of their homes for FREE. Check it out!
California Housing Bubble Popped, but still falling…look out below
Posted on April 15, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages | Leave a Comment
I really don’t have much to say other than me too on the following article.
Excerpt from it:
Frankly, all this hyperbole of reaching a bottom is wishful thinking and is completely devoid of the economic realities surrounding us. But what can you expect from an industry that kept chanting a mantra of “home prices only go up” for a decade? Now, it is a primitive form of the argument that “we are inches away from a bottom.” Well guess what? Many folks actually bought this line in California and will realize very quickly that we are nowhere near a bottom….Read more of the article.
Fannie Mae Underlines “Do the right thing!”
Posted on April 15, 2008
Filed Under Foreclosure, Lenders & Banks, Regulations & Government | 1 Comment
Fannie Mae in its release on Friday made it abundantly clear that they will see that there are repercussions for the entitlement mentality. As housing prices drop many people have taken the approach of ‘oh well it was great while it lasted’ and decided it is better to cut their losses and walk away from their home instead of figure out how to make lemonade from lemons.
When we purchase a home we purchase it in fact to make it a home, place to live, raise a family, build memories and yes as an investment not as a 1-2 year or less investment to flip and move on talking about how much money we made. If you didn’t buy your house with that pretense in mind, unless something drastically changed in your life then, “Houston you may have a problem”!
“Quick cash return” that is great if you can do it, so is winning in vegas, but all good things must come to an end. Buying a home is more than a trip to ‘Housing Vegas’ where you cut your losses and hop the next plane home and Fannie Mae has put its foot down to penalize people who think that way. If don’t make an effort to save your home or even care about your credit enough to make it work to stay in a home and trying to save it they will not gurantee someone buying a home who’s home went into foreclosure for 5 years and then they must have a 680 or better credit score and 10% down. Take it from me that is tough stuff considering we are just leaving 40 year loans, with interest only, no money down and 125% of value on stated income. Welcome to 2008 ‘the year to pay the piper’!
The foreclosure and Housing Crisis plot thickens
Posted on April 15, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages | 1 Comment
Foreclosure numbers and home builder ’sentiment survey’ through March 2008 were released today. (Read USA Today Article) The numbers continue stay low or worsen and with a large number of “sub prime” loans resetting in May and June things stand to get much worse.
It is expected that 1/4 or more of the home going on the market this year could be bank owned properties. This problem not only continues the problem of falling home prices, but hammers the bottom line of the banks. Now we not only need to discuss how to help people stay in their homes as the banks sure don’t want them, but use some logic in how to offer some incentives for people to be able to qualify for homes.
I mean say you have missed the housing bubble, sold your house or just want to buy - lenders are going to have to give some way for people borrow money and get back in these homes or the nations lenders are going to end up going into the real estate rental business.
MC Cain not retracting, but rethinking his “Mortgage Crisis” position
Posted on April 11, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages, Regulations & Government | Leave a Comment
McCain didn’t exactly change his position on what to do about the crisis the nation is facing, but he did figure out that good politics is not always, scratch that usually not compatible with completely speaking your mind. In principle I think in his California speech of a few weeks ago (click here) as well as his speech in New York ’shifting his position’ essentially, say the same thing - it is not the governments responsiblity to relieve you of yours, however if you have fallen on bad times because of circumstances beyond your control or you are trying to do the right thing maybe we can or will help you.
This obviously differs from the mind set people want of “it is not my fault” please help me! Well as just Jimmy Buffet finds in his song “Margaritaville”, it’s nobodys fault…it could be my fault…it’s my own damn fault. Well if it is then you probably should suffer, I mean there is a consiquene for your actions, just ask my 7 year old!
The counter point is there is justice, there is mercy and there is grace. You can experience justice and mercy, but grace comes with a price, who pays for it and who deserves deserves it? As the legal system shows guilt and defense are the opposition to justice to make the scales equal the justice must balance the two (justice is served - or results not always how you thought). The fix again for the mess is like marriage easy to get into, but not so easy to get out.
It is going to take time to fix this mess! To Mr. McCain’s credit he may not know much about the “economy”, but hopefully common sense can weigh out somewhere. As an old lawyer once said “90% of the law is common sense”, I mean you want always be there to pick up you kid when they fall so they have to learn to do it on their own. I think both party candidates have a gap to get to the right spot in the middle.
New York Times Article on Mr McCain
What is the answer to “Foreclosure Crisis”?
Posted on April 2, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages, Regulations & Government | 1 Comment
Well I have been meaning to write on this since the news came out last week in the Florida-Times Union Article about Georgia trying to add new laws to help with and slow down the “foreclosure crisis”.
Well today is the day to write I guess. Legislation or no legislation is the question? The reality here is slowing down or preventing foreclosure is not necessarily the answer. The other questions that must be asked first are…
- Are they willing to try and work through the problem of a delinquency - because of a ‘valid reason’?
- Where they duped?
- can they just not get new financing, because adjustable rates (they are probably close to rate when they refied in the first place or purchased)?
- How much cash have they taken out in refi-cash outs or home equity loans?
- or are they just mad because housing prices are falling and they paid too much
If it is any of the last three then, I don’t really have much sympathy. If there is a real need or they were truly duped - that’ll be tough to prove, but if you were duped you should be able to make a pretty good case of it - even if your own stupid somewhat compounded it. (Reference mama - “if something seems too good to be true it probably is”).
There are sources, if your bank won’t work with you directly to take some of the loss from the housing over inflated prices or reamortizing or recasting your note (Mortgage Mitigation Companies). I don’t think it is practical or logical to legally force lenders through legislation to do the right thing.
I mean in my life as probably in yours I have found that when push comes to shove you can make a deal or figure out how to do something when you really have to (with the given you haven’t lost your job or had a death or other major blow). Banks should fairly rapidly figure this out and become much more willing to work through problems instead of turn a blind eye or be hard nosed. Unfortunately, there will be some suffering by both the banks and John Q Public, but it should work out. I don’t think political pressure without a lot of due diligence is the answer - did I say it A LOT OF DUE DILIGENCE
Nothing like now having a bank walk in the shoes of the “common man” (I mean that collectively ladies)!
Mortgage broker license change is not the answer
Posted on March 31, 2008
Filed Under Mortgages, Regulations & Government | 1 Comment
Read my comments as posted to the wsj article We Don’t Need a Mortgage Guild
I definitely don’t think changing the licensing of mortgage brokers will have a direct impact on the future of mortgage problems. I have been a licensed insurance agent for nearly 20 years and I definitely don’t think that my license, any other agent or mortgage brokers license has any control over claims, ability of person to pay or other issues with a loan or insurance policy.
The fact of the matter is blame for this crisis lies with the lenders, true the mortgage broker has some part in this, but to your point of limiting good sales people or smart people by licensing, goes the same with the licensed ones. That is to say a good sales person will figure out how to abuse you with your own products or they will know it better than you, the strengths, weakness and ability to sell it. So you set yourself up if you don’t do your homework. It has always been my approach both with my business and the agents who produced for me that you shop all options and then based on total price or payment terms you fit that to the customers needs and wants - assuming all coverage is equal.
I feel there is a need for mortgage brokers, just like independent insurance agents. However there must be a balance between “greed” to getting new business and actual “real underwriting”. I mean if you can’t base your lending practices on some methodology and gain some predictability just like insurance then Vegas baby here we come and it is purely a gamble! Hey what do you expect other than you win some you lose some.
It appears that in the haste to make money much of the sensible lending practices of the past 100 years went out the widow much like IPO’s during the dot com boom.
Commericial Markets now spooked by Credit Crisis
Posted on March 31, 2008
Filed Under Lenders & Banks, Mortgages | Leave a Comment
Commercial has appeared to be somewhat out of the fray during the current “credit crisis” it appears now that wall street and in turn lenders with no secondary market for mortgage back securities are in effect putting the same stops on commercial lending. Commercial lending which has also succeeded as a bi product both directly and indirecty of the growth and past gains of the residental market will now prove out if the yeilds, loans and risks in it were as wild as the sub-prime and other lending practices in the residential market. Read some stats on the commercial sector.
McCain’s view on the current Credit Crisis
Posted on March 29, 2008
Filed Under Foreclosure, Lenders & Banks, Mortgages, Regulations & Government | Leave a Comment
See my response to John Mc Cain’s opinion on the “foreclosure crisis” in orange register.
Politics aside, I believe we must take a long look at the impacts of “help” in this case. As our market systems is designed for supply and demand and to have market cycles. It is unfortunate when the market cycles are created or compounded by the greed of; in this case lenders.
Unfortunately some who don’t deserve it may suffer, but the case is more of the one’s who do deserve it will get their just deserve. If you have a “bad mortgage” or problems as a result of this current credit crisis, if you have a steady income and you are trying to do the right thing and pay your mortgage then you have options.
If you are mad because you are paying too much or you home value fell when you were betting on that new home equity loan this year then you may have a problem.
keep looking » 
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