It’s not quite that straight forward, IMO… The banks don’t have the houses on the books yet – they haven’t foreclosed on the previous owners yet. Lots of the foreclosure inventory is in pre-foreclosure – not to the bank owned/REO state. Owners are living mortgage free, and the banks aren’t doing anything.

It’s not quite that straight forward, IMO… The banks don’t have the houses on the books yet – they haven’t foreclosed on the previous owners yet. Lots of the foreclosure inventory is in pre-foreclosure – not to the bank owned/REO state. Owners are living mortgage free, and the banks aren’t doing anything.

That’s not quite true either. True that banks don’t have the houses, but it’s not true that they aren’t in the foreclosure process. There’s no moratorium, so banks are processing and foreclosing. The pre-foreclosures we see are just dumb dumb bank robbing interest only loan bandits milking the banks for a new 30 year fixed 4% interest loan. Most are getting them.

That’s not quite true either. True that banks don’t have the houses, but it’s not true that they aren’t in the foreclosure process. There’s no moratorium, so banks are processing and foreclosing. The pre-foreclosures we see are just dumb dumb bank robbing interest only loan bandits milking the banks for a new 30 year fixed 4% interest loan. Most are getting them.

That’s not quite true either. True that banks don’t have the houses, but it’s not true that they aren’t in the foreclosure process. There’s no moratorium, so banks are processing and foreclosing. The pre-foreclosures we see are just dumb dumb bank robbing interest only loan bandits milking the banks for a new 30 year fixed 4% interest loan. Most are getting them.

[quote=PadreBrian]That’s not quite true either. True that banks don’t have the houses, but it’s not true that they aren’t in the foreclosure process. There’s no moratorium, so banks are processing and foreclosing. The pre-foreclosures we see are just dumb dumb bank robbing interest only loan bandits milking the banks for a new 30 year fixed 4% interest loan. Most are getting them.[/quote]

I wouldn’t say “most are getting them”. From what I’ve been reading, only about 9% of delinquent homeowners are getting them. That leaves 91% who are not – or are in limbo for other reasons.

http://www.mcclatchydc.com/homepage/story/73768.html

The administration thinks that about 2.7 million U.S. homeowners are at least two months behind on their mortgage payments, roughly equal to the population of Kansas. Yet only 9 percent of eligible borrowers had been offered trial loan modifications through June.

snip

Wells Fargo had modified just 6 percent of its eligible loans through June.

http://www.forbes.com/2009/08/04/mortgage-loan-obama-business-wall-street-modifications.html

Banks have made underwhelming progress on helping struggling mortgage borrowers, extending trial loan modifications to just 9% of those eligible under a $75 billion Obama administration program–and even that number may be inflated. Some of the homeowners in the trial program may not be allowed into the program due to weak initial controls.

According to a report released Tuesday by the U.S. Treasury, mortgage servicers signed up 230,000 struggling borrowers for trial modifications under the president’s plan in the six months since it was launched. That represents 9% of the 2.7 million mortgages that are at least 60 days past due and considered eligible.

[quote=PadreBrian]That’s not quite true either. True that banks don’t have the houses, but it’s not true that they aren’t in the foreclosure process. There’s no moratorium, so banks are processing and foreclosing. The pre-foreclosures we see are just dumb dumb bank robbing interest only loan bandits milking the banks for a new 30 year fixed 4% interest loan. Most are getting them.[/quote]

I wouldn’t say “most are getting them”. From what I’ve been reading, only about 9% of delinquent homeowners are getting them. That leaves 91% who are not – or are in limbo for other reasons.

http://www.mcclatchydc.com/homepage/story/73768.html

The administration thinks that about 2.7 million U.S. homeowners are at least two months behind on their mortgage payments, roughly equal to the population of Kansas. Yet only 9 percent of eligible borrowers had been offered trial loan modifications through June.

snip

Wells Fargo had modified just 6 percent of its eligible loans through June.

http://www.forbes.com/2009/08/04/mortgage-loan-obama-business-wall-street-modifications.html

Banks have made underwhelming progress on helping struggling mortgage borrowers, extending trial loan modifications to just 9% of those eligible under a $75 billion Obama administration program–and even that number may be inflated. Some of the homeowners in the trial program may not be allowed into the program due to weak initial controls.

According to a report released Tuesday by the U.S. Treasury, mortgage servicers signed up 230,000 struggling borrowers for trial modifications under the president’s plan in the six months since it was launched. That represents 9% of the 2.7 million mortgages that are at least 60 days past due and considered eligible.