[quote=spdrun]The criteria are apparently the same (narrower than, but same group) as for existing forbearance. Not sure why Fannie/Freddie would want those homes on the market, unless it’s cheaper to have “owners” dump’em in 5 years than to foreclose.[/quote] Some of these owners have already held onto them (as their “principal residence”) thru HAMP for more than five years now. All during this time, this group can’t maintain their property because their income either hasn’t gone up since they were in foreclosure back in ’08-’10 or has gone up very little.
The ones who have managed to “mattress” some of the equity they took out prior to ’09 are obviously still living on it today because very few of these 40-somethings appear to be gainfully employed (unless they are working out of their homes stuffing envelopes) :=0 Thus, they can’t afford to repair/improve their properties.
The longer this game goes on, the worse and worse condition these properties become, causing the lenders who are taking it in the shorts with these “phony 2% mods” to not initiate foreclosure on them.
It’s terrible for the neighbors around these properties who might want to sell in the coming months/years cuz these deadbeats aren’t going to go anywhere. Where they are living now is as cheap as it gets for them.
I don’t see any of these people voluntarily “dumping” these properties in five years … that is, unless they are foreclosed upon. If they moved, they would have to move to a place which would charge then much more rent than what they’re currently paying in their ~2% / 40-year “modified” mortgage.
When I get time next week, I’m going to check on everyone on my local “former-squatter-now-mod list” to find out if their taxes have been paid for FY 15/16. Every property owner around here got a substantial Prop 8 hike this last fiscal year so our property taxes are now quite a bit higher than they were in FY 14/15.
I just don’t see this group being able to keep up with their taxes, either, but that issue in and of itself does not affect my resale value.
