California Loan Modifications update

[SD Realtor]

Very good points in this thread all around. I agree with all of them. Even though the effective post tax increase on a higher payment is lower then the pre tax increase, that sticker shock is real and I find buyers adhere to monthly budget that is pre tax based. Most people do not have the discipline to save the tax refund and then spread it out over the mortgage payments for the entire year. Similarly higher rates reduce buying power and qualifications so I do fee that the rate hikes hurt alot even with post tax calculations taken into the calculation.

I do kind of believe we are in a longer term low rate environment IFF (if and ONLY if) our foreign creditors keep extending our bar tab. I believe the treasuries are pretty much the benchmark for alot of lending activities, be it corporates, munis, even mortgages. To me, and I am a simple man, the only thing that fluctuates is the margins on these other vehicles and those margins are basically risk assessments. I can be and probaby am wrong to view things in that simple of a manner. Counselor and Pem are probably correct, as long as the pipe keeps flowing from China it seems like it is a reasonable assessment. When that spigot is shut down though…

Game on.

[sdrealtor]

Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?

[sdrealtor]

Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?

[sdrealtor]

Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?

[sdrealtor]

Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?

[sdrealtor]

Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?

[Effective Demand]

[quote=sdrealtor]Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?[/quote]

Well if it was a short pay listing that sold then the 2nd went away (or could still be recourse, depends on the verbiage) and wasn’t modified. It would show up on the link above as the second graphic, green line.

[Effective Demand]

[quote=sdrealtor]Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?[/quote]

Well if it was a short pay listing that sold then the 2nd went away (or could still be recourse, depends on the verbiage) and wasn’t modified. It would show up on the link above as the second graphic, green line.

[Effective Demand]

[quote=sdrealtor]Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?[/quote]

Well if it was a short pay listing that sold then the 2nd went away (or could still be recourse, depends on the verbiage) and wasn’t modified. It would show up on the link above as the second graphic, green line.

[Effective Demand]

[quote=sdrealtor]Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?[/quote]

Well if it was a short pay listing that sold then the 2nd went away (or could still be recourse, depends on the verbiage) and wasn’t modified. It would show up on the link above as the second graphic, green line.

[Effective Demand]

[quote=sdrealtor]Effective Demand if you are still around I have a question for you. While I am not seeing principal reductions per se I have seen a number of 2nds accept short pay settlements for pennies on the dollar. These are de facto principal reductions but probably not included in the prinicpal reduction statistics you posted. Where would these be shown in your statisitcs if at all? If they are, how big is that segment?[/quote]

Well if it was a short pay listing that sold then the 2nd went away (or could still be recourse, depends on the verbiage) and wasn’t modified. It would show up on the link above as the second graphic, green line.

[sdrealtor]

Sorry that I was not more clear. That is not what I was asking. I know several people that have gotten letters from their lenders on their 2nds saying for example: If you send us $6,000 we will consider your 2nd satisfied and will write off the rest (over $75,000 and yes this really happened).

I know of several that just stopped paying their 2nds that were compeltely underwater knowing the 2nd would not foreclose as they would get nothing. They asked the 2nd to settle for less and the 2nd said no at first. They told the 2nd to pound sand and go ahead with a foreclosure. Eventually the 2nd came to the table and settled with them for pennies on the dollar. These are not loan mods nor are they short sales. Just wondering how much of these are really happening and where if at all they are ebing accounted for in any statistics.

[sdrealtor]

Sorry that I was not more clear. That is not what I was asking. I know several people that have gotten letters from their lenders on their 2nds saying for example: If you send us $6,000 we will consider your 2nd satisfied and will write off the rest (over $75,000 and yes this really happened).

I know of several that just stopped paying their 2nds that were compeltely underwater knowing the 2nd would not foreclose as they would get nothing. They asked the 2nd to settle for less and the 2nd said no at first. They told the 2nd to pound sand and go ahead with a foreclosure. Eventually the 2nd came to the table and settled with them for pennies on the dollar. These are not loan mods nor are they short sales. Just wondering how much of these are really happening and where if at all they are ebing accounted for in any statistics.

[sdrealtor]

Sorry that I was not more clear. That is not what I was asking. I know several people that have gotten letters from their lenders on their 2nds saying for example: If you send us $6,000 we will consider your 2nd satisfied and will write off the rest (over $75,000 and yes this really happened).

I know of several that just stopped paying their 2nds that were compeltely underwater knowing the 2nd would not foreclose as they would get nothing. They asked the 2nd to settle for less and the 2nd said no at first. They told the 2nd to pound sand and go ahead with a foreclosure. Eventually the 2nd came to the table and settled with them for pennies on the dollar. These are not loan mods nor are they short sales. Just wondering how much of these are really happening and where if at all they are ebing accounted for in any statistics.

[sdrealtor]

Sorry that I was not more clear. That is not what I was asking. I know several people that have gotten letters from their lenders on their 2nds saying for example: If you send us $6,000 we will consider your 2nd satisfied and will write off the rest (over $75,000 and yes this really happened).

I know of several that just stopped paying their 2nds that were compeltely underwater knowing the 2nd would not foreclose as they would get nothing. They asked the 2nd to settle for less and the 2nd said no at first. They told the 2nd to pound sand and go ahead with a foreclosure. Eventually the 2nd came to the table and settled with them for pennies on the dollar. These are not loan mods nor are they short sales. Just wondering how much of these are really happening and where if at all they are ebing accounted for in any statistics.

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