[quote=HLS]Harvey,
Y’all don’t get it.It’s not common sense and it is idiotic.
There is no reason to reduce principal and take a loss when the interest rate can be reduced and lower the payment.
‘homeowner’ has to live somewhere. If you lower their payment and they still cant afford it, they have no business staying there.
There is no reason to reduce principal, It’s completely unfair to others who have struggled to make their payments.
I’m convinced that idiots come up with these programs.
I understand foreclosure but it rarely has higher costs
than principal reduction.[/quote]Totally agree, HLS. Most of these clowns have already removed their (“fake” at the time) equity from these properties. Why should they get more equity at taxpayers’ expense, ESPecially whilst they’re still driving their late-model luxury vehicles (up to 2 per household PLUS boat/MC/jetski, etc) purchased with their “fake” equity.
I’m aware of several homeowners who have taken out $200K to $600K in “equity” from their homes in the past ~13 years and are still living in them today! This group is not entitled to any more …. ESPecially if they have failed to maintain the property with all their ill-gotten spoils and instead let it go to waste! As far as I’m concerned, this group (which varies wildly in size by zip code) should have been foreclosed on a long time ago but are instead (in accordance with CA CC section 2924.10) “supposedly” paying on ridiculous HAMP mods at ~2% for 40 years. These mods provide for their lender(s) to eventually recoup most or all of their back interest owed as well as their prior NOD/NOS trustee fees. It’s as it should be, ASSUMING that these clowns are actually timely making the new payments (until they are 75 or 80 yrs old?). If they can’t, or decide it is no longer worth it to do so, prompt (non-judicial) FORECLOSURE IS the remedy! At that point, CCC sec. 2924.10 will no longer apply in their case.
HLS, do you know any of the backstory on why the Legislature decided to extend CA Civil Code section 2924.10 again until 1/1/18? It was due to expire on 1/1/14 (the CA RE market had substantially improved by that time), yet they extended it another 4 years! I didn’t follow that development but just checked on it last week:
