That’s an interesting (nationwide) view. Jeff Gundlach on CNBC is worried that subprime stocks will fall in value due to forced repricing of risky “subprime” loan “assets” which are apparently only worth 20% of their original note value upon resale by a foreclosing lender. He’s using Countrywide/B of A as an example. He states it is due to foreclosure taking an avg of 26 months due to current robosigning and MERS lawsuits.

There is no excuse for this in CA. A property timely foreclosed on acc to the law should only take 4-5 mos to reach the market from the date of first pymt default. If cleaned up quickly and priced competitively, its REO sale should have closed escrow within 60-90 more days.

This tremendous lag time is entirely the fault of lazy, incompetent Big Banks and laws in some states requiring possession of the orig note to foreclose (which they, of course, don’t have).

The banks/servicers don’t seem to care if “subprime” hard assets plummet on the stock market. It seems as if this “dilemma” presents “no skin off their necks.” They SHOULD care, however, as a further downward spiral in residential RE values could make it more difficult to get their needed recovery on their present and future REO’s.

This very short-sighted view by Big Banks/servicers could have the effect of lowering ALL owners RE values further, thus depressing nearby “equity sale” comps for their own future REOs these “institutional idiots” will need to unload. They’re dumb a$$es who need to get off the stick, pronto!

This is a completely preventable downward spiral of values in areas already beset by multiple foreclosures, short sales and property inhabited by non-performing borrowers, IMO.

That’s an interesting (nationwide) view. Jeff Gundlach on CNBC is worried that subprime stocks will fall in value due to forced repricing of risky “subprime” loan “assets” which are apparently only worth 20% of their original note value upon resale by a foreclosing lender. He’s using Countrywide/B of A as an example. He states it is due to foreclosure taking an avg of 26 months due to current robosigning and MERS lawsuits.

There is no excuse for this in CA. A property timely foreclosed on acc to the law should only take 4-5 mos to reach the market from the date of first pymt default. If cleaned up quickly and priced competitively, its REO sale should have closed escrow within 60-90 more days.

This tremendous lag time is entirely the fault of lazy, incompetent Big Banks and laws in some states requiring possession of the orig note to foreclose (which they, of course, don’t have).

The banks/servicers don’t seem to care if “subprime” hard assets plummet on the stock market. It seems as if this “dilemma” presents “no skin off their necks.” They SHOULD care, however, as a further downward spiral in residential RE values could make it more difficult to get their needed recovery on their present and future REO’s.

This very short-sighted view by Big Banks/servicers could have the effect of lowering ALL owners RE values further, thus depressing nearby “equity sale” comps for their own future REOs these “institutional idiots” will need to unload. They’re dumb a$$es who need to get off the stick, pronto!

This is a completely preventable downward spiral of values in areas already beset by multiple foreclosures, short sales and property inhabited by non-performing borrowers, IMO.

That’s an interesting (nationwide) view. Jeff Gundlach on CNBC is worried that subprime stocks will fall in value due to forced repricing of risky “subprime” loan “assets” which are apparently only worth 20% of their original note value upon resale by a foreclosing lender. He’s using Countrywide/B of A as an example. He states it is due to foreclosure taking an avg of 26 months due to current robosigning and MERS lawsuits.

There is no excuse for this in CA. A property timely foreclosed on acc to the law should only take 4-5 mos to reach the market from the date of first pymt default. If cleaned up quickly and priced competitively, its REO sale should have closed escrow within 60-90 more days.

This tremendous lag time is entirely the fault of lazy, incompetent Big Banks and laws in some states requiring possession of the orig note to foreclose (which they, of course, don’t have).

The banks/servicers don’t seem to care if “subprime” hard assets plummet on the stock market. It seems as if this “dilemma” presents “no skin off their necks.” They SHOULD care, however, as a further downward spiral in residential RE values could make it more difficult to get their needed recovery on their present and future REO’s.

This very short-sighted view by Big Banks/servicers could have the effect of lowering ALL owners RE values further, thus depressing nearby “equity sale” comps for their own future REOs these “institutional idiots” will need to unload. They’re dumb a$$es who need to get off the stick, pronto!

This is a completely preventable downward spiral of values in areas already beset by multiple foreclosures, short sales and property inhabited by non-performing borrowers, IMO.

[quote=sreeb]They may be slow because they can’t afford to be fast. He threw out 200B of non performing loans at BofA. If the recovery rate is really low and they efficiently liquidate, they may go under right now.[/quote]

sreeb, if this should happen, this CAN’T be good for the residential RE market at large :=(

[quote=sreeb]They may be slow because they can’t afford to be fast. He threw out 200B of non performing loans at BofA. If the recovery rate is really low and they efficiently liquidate, they may go under right now.[/quote]

sreeb, if this should happen, this CAN’T be good for the residential RE market at large :=(