[quote=SK in CV]As I said BG, they’re incompetent. They are ill equipped to deal with distressed assets. Keep in mind, for the most part, we’re not talking about banks, we’re talking about loan servicing organizations. They get paid a tiny margin for collecting payments. Because they are not (always) the investor, they have little motivation to complete mods. They make more on foreclosure but they don’t have the manpower. (hence the robo-signing, mostly in judicial foreclosure states.)[/quote]
Nevertheless, paying trustee fees early on represent but a very small portion of total loss to an aggrieved lender compared to them letting a trustor squat for months/years causing them to also have to pay their back taxes, poss back HOA dues and unpaid homeowner’s insurance premiums upon the filing of a (very late) trustee’s deed. This exacerbated loss was all due to the lenders’ sitting on their hands … for YEARS.
It JUST DOESN’T TAKE a rocket scientist to figure out how to get the proper minimal paperwork to a trustee to initiate foreclosure. Lots of folks in CA (possessing only GEDs and HS Diplomas) have been performing these duties for decades.
At the point of 111 days of default (141 days in recent years) it doesn’t matter what the market value or even the condition of the property is. The property will either sell at a trustee’s sale for more than the opening bid amount or it will revert back to the foreclosing beneficiary.
Both are perfectly fine remedies.
There’s NO NEED to make a 15-page report or even get an appraisal. At that point, an appraisal is moot. The aggrieved lender’s only focus should be recovery of the asset as soon as allowable by law. Even if it takes Sheriff’s deputies setting the trustor’s belongings on the sidewalk and changing the locks after the trustees’ sale.
That is a partial description of the statutory scheme of the law. Period.
It is a lot easier (and cheaper) to hire people to clean up and dispose of an asset you have full control over than to endlessly play games with an asset a (nonperforming) “owner” (in name only) has control over.
