[quote=hslinger][quote=bearishgurl]Under the current CA foreclosure “statutory scheme” of 111 to 141 days to trustees sale, if a lender lost $100K in “missed payments” (and followed this procedure to the letter), they would have lost $709 to $901 per day![/quote]BG it’s a good thing rationality isn’t expected of you because no one in their right mind would try to link a principle write down exclusively to missed payments.
Continue on with your whining, your irrational expectations are amusing.[/quote]
hslinger, the vast majority of folks in the “squat-mod” and “squat-SS” group haven’t had a chance to pay down any principal due to having I/O loans, choosing Option 3 or 4 on their “Option ARMS” or hitting their 125% threshold on their “exotic” mtg instrument, lol . . . Most are no doubt in the in “FB” group, meaning they are “Millenium Boom buyers.” The one’s that aren’t and are currently in these two groups have bled their ATM machine/”home” dry. And if they’ve paid any principal down at all, it has been eaten up by (multiple) closing costs, late fees and trustees fees.
If you read thru the thread, you will see that sdr’s stated his squat-“successful mod” example (who remodeled themselves into their “situation” they are in today) had “$100K of missed payments forgiven.” He claimed these missed payments (no doubt along with late fees, deferred interest and trustees fees) resulted in a $100K loss to their lender which they wrote off in a mod in favor of the FB’s.
I maintain that their lender voluntarily allowed themselves to be screwed to the tune of $100K if (this story is factual). They could have foreclosed at the 111-day or 141-day mark after the 1st payment was missed but instead allowed these borrowers to “squat” for many months in their (newly-remodeled) property.
Hence, the term I coined as “lender malaise.” The lenders have made their own beds.
I agree that “$709 to $901” per day is a ridiculous amount for a lender to lose and probably never happens. A fictitious residential mtg this large is not often (if ever) obtained, esp in the US. Obviously, a mtg this large would be a “private” loan and this type of lender would likely not be “compensated” by TPTB to delay foreclosure to allow their borrowers to indefinitely “squat.”
I urge you to reread the thread and continue to be “amused.”
