Banks adjusting delinquent loans?

[citydweller]

kev374, I think one point you’re missing is that most of these loans are for more than the house is currently worth. Also, even a 5% 30 year fixed monthly payment is probably higher than the original teaser rate payments that a lot of these people started out with.

[SD Realtor]

kev I am not sure what your brother was referring to but this is what I think he was alluding to..

All lenders or companies servicing loans have loan workout departments that are intended to help homeowners out who are in distress. However in order to go through the loan workout process it is by all means no walk in the park. The burden of proof is on the homeowner that they are in distress. That includes a pile of documentation, tax returns, financial records, employment information, w2s… on and on and on. Based on the situation as well as your particular cash flow, the lender or shall I say loan workout department MAY go ahead and try to figure out a way to help you out. It all depends on the numbers, if they see a way that will be beneficial to THEM.

Again, the entire process is a royal pain in the ass. I know of a few people who are going through the process. Kev I don’t think that the lenders are actually actively calling everyone up and offering a loan workout to them. What is happening is that people who may have missed a payment or who are in default or who have contacted the lender to say that they need help, are getting the details on what they need to provide to the lender in order for the lender to consider a loan work out.

Now I will say that lenders are being more proactive and getting in touch with people who have impending resets so that the reset does not catch them by surprise.

*******

You brought up the more important question kev which was, how will this impact the depreciation cycle? I don’t think it will be enough to substantially change things. To me at the very most, it will simply prolong the pain and slow down the tide… but eventually the painkiller wears off, and the tide rolls in anyways… sorry to hack two metaphors.

********

SD Realtor

[SD Realtor]

kev I am not sure what your brother was referring to but this is what I think he was alluding to..

All lenders or companies servicing loans have loan workout departments that are intended to help homeowners out who are in distress. However in order to go through the loan workout process it is by all means no walk in the park. The burden of proof is on the homeowner that they are in distress. That includes a pile of documentation, tax returns, financial records, employment information, w2s… on and on and on. Based on the situation as well as your particular cash flow, the lender or shall I say loan workout department MAY go ahead and try to figure out a way to help you out. It all depends on the numbers, if they see a way that will be beneficial to THEM.

Again, the entire process is a royal pain in the ass. I know of a few people who are going through the process. Kev I don’t think that the lenders are actually actively calling everyone up and offering a loan workout to them. What is happening is that people who may have missed a payment or who are in default or who have contacted the lender to say that they need help, are getting the details on what they need to provide to the lender in order for the lender to consider a loan work out.

Now I will say that lenders are being more proactive and getting in touch with people who have impending resets so that the reset does not catch them by surprise.

*******

You brought up the more important question kev which was, how will this impact the depreciation cycle? I don’t think it will be enough to substantially change things. To me at the very most, it will simply prolong the pain and slow down the tide… but eventually the painkiller wears off, and the tide rolls in anyways… sorry to hack two metaphors.

********

SD Realtor

[SD Realtor]

kev I am not sure what your brother was referring to but this is what I think he was alluding to..

All lenders or companies servicing loans have loan workout departments that are intended to help homeowners out who are in distress. However in order to go through the loan workout process it is by all means no walk in the park. The burden of proof is on the homeowner that they are in distress. That includes a pile of documentation, tax returns, financial records, employment information, w2s… on and on and on. Based on the situation as well as your particular cash flow, the lender or shall I say loan workout department MAY go ahead and try to figure out a way to help you out. It all depends on the numbers, if they see a way that will be beneficial to THEM.

Again, the entire process is a royal pain in the ass. I know of a few people who are going through the process. Kev I don’t think that the lenders are actually actively calling everyone up and offering a loan workout to them. What is happening is that people who may have missed a payment or who are in default or who have contacted the lender to say that they need help, are getting the details on what they need to provide to the lender in order for the lender to consider a loan work out.

Now I will say that lenders are being more proactive and getting in touch with people who have impending resets so that the reset does not catch them by surprise.

*******

You brought up the more important question kev which was, how will this impact the depreciation cycle? I don’t think it will be enough to substantially change things. To me at the very most, it will simply prolong the pain and slow down the tide… but eventually the painkiller wears off, and the tide rolls in anyways… sorry to hack two metaphors.

********

SD Realtor

[SD Realtor]

kev I am not sure what your brother was referring to but this is what I think he was alluding to..

All lenders or companies servicing loans have loan workout departments that are intended to help homeowners out who are in distress. However in order to go through the loan workout process it is by all means no walk in the park. The burden of proof is on the homeowner that they are in distress. That includes a pile of documentation, tax returns, financial records, employment information, w2s… on and on and on. Based on the situation as well as your particular cash flow, the lender or shall I say loan workout department MAY go ahead and try to figure out a way to help you out. It all depends on the numbers, if they see a way that will be beneficial to THEM.

Again, the entire process is a royal pain in the ass. I know of a few people who are going through the process. Kev I don’t think that the lenders are actually actively calling everyone up and offering a loan workout to them. What is happening is that people who may have missed a payment or who are in default or who have contacted the lender to say that they need help, are getting the details on what they need to provide to the lender in order for the lender to consider a loan work out.

Now I will say that lenders are being more proactive and getting in touch with people who have impending resets so that the reset does not catch them by surprise.

*******

You brought up the more important question kev which was, how will this impact the depreciation cycle? I don’t think it will be enough to substantially change things. To me at the very most, it will simply prolong the pain and slow down the tide… but eventually the painkiller wears off, and the tide rolls in anyways… sorry to hack two metaphors.

********

SD Realtor

[SD Realtor]

kev I am not sure what your brother was referring to but this is what I think he was alluding to..

All lenders or companies servicing loans have loan workout departments that are intended to help homeowners out who are in distress. However in order to go through the loan workout process it is by all means no walk in the park. The burden of proof is on the homeowner that they are in distress. That includes a pile of documentation, tax returns, financial records, employment information, w2s… on and on and on. Based on the situation as well as your particular cash flow, the lender or shall I say loan workout department MAY go ahead and try to figure out a way to help you out. It all depends on the numbers, if they see a way that will be beneficial to THEM.

Again, the entire process is a royal pain in the ass. I know of a few people who are going through the process. Kev I don’t think that the lenders are actually actively calling everyone up and offering a loan workout to them. What is happening is that people who may have missed a payment or who are in default or who have contacted the lender to say that they need help, are getting the details on what they need to provide to the lender in order for the lender to consider a loan work out.

Now I will say that lenders are being more proactive and getting in touch with people who have impending resets so that the reset does not catch them by surprise.

*******

You brought up the more important question kev which was, how will this impact the depreciation cycle? I don’t think it will be enough to substantially change things. To me at the very most, it will simply prolong the pain and slow down the tide… but eventually the painkiller wears off, and the tide rolls in anyways… sorry to hack two metaphors.

********

SD Realtor

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[kev374]

Why would a lender fix the rate this far below market for longer than a few more years?

well, not sure but the argument by the bulls is that it costs lenders a lot more to foreclose and it’s cheaper to adjust the rate.

[kev374]

Why would a lender fix the rate this far below market for longer than a few more years?

well, not sure but the argument by the bulls is that it costs lenders a lot more to foreclose and it’s cheaper to adjust the rate.

[kev374]

Why would a lender fix the rate this far below market for longer than a few more years?

well, not sure but the argument by the bulls is that it costs lenders a lot more to foreclose and it’s cheaper to adjust the rate.

[kev374]

Why would a lender fix the rate this far below market for longer than a few more years?

well, not sure but the argument by the bulls is that it costs lenders a lot more to foreclose and it’s cheaper to adjust the rate.

[Author]

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