Foreclosure freeze conspiracy theory

[sdrealtor]

They have people signing off on thosusands of documents a month without the capacity to read any of them. They are literally signing a page a minute for ever working minute they are at work not allowing for lunch or bathroom breaks. These are legal proceedings being undertaken by autograph signing machines. They simply dont have the capacity to perform what they are bound to. This isnt a conspiracy this is a bunch of lawyers shutting down a procedural problem.

[Aecetia]

If that is what they have been doing, then what happens to the ones they autosigned without reading? Are they going to be recalled? This sounds like it could lead to a lot of problems and court cases. You are in the business, what is your prediction of the effect of this on the real estate market?

[Aecetia]

If that is what they have been doing, then what happens to the ones they autosigned without reading? Are they going to be recalled? This sounds like it could lead to a lot of problems and court cases. You are in the business, what is your prediction of the effect of this on the real estate market?

[Aecetia]

If that is what they have been doing, then what happens to the ones they autosigned without reading? Are they going to be recalled? This sounds like it could lead to a lot of problems and court cases. You are in the business, what is your prediction of the effect of this on the real estate market?

[Aecetia]

If that is what they have been doing, then what happens to the ones they autosigned without reading? Are they going to be recalled? This sounds like it could lead to a lot of problems and court cases. You are in the business, what is your prediction of the effect of this on the real estate market?

[Aecetia]

If that is what they have been doing, then what happens to the ones they autosigned without reading? Are they going to be recalled? This sounds like it could lead to a lot of problems and court cases. You are in the business, what is your prediction of the effect of this on the real estate market?

[sdrealtor]

Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.

I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.

The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.

My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.

[sdrealtor]

Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.

I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.

The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.

My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.

[sdrealtor]

Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.

I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.

The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.

My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.

[sdrealtor]

Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.

I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.

The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.

My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.

[sdrealtor]

Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.

I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.

The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.

My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.

[davelj]

There is a certain irony in this situation. In an effort to appease the blow-out-the-foreclosures faction (who understandably want more and rapid foreclosures so that prices decline), among others, the servicers pushed harder than they were operationally able and cut corners to, well, blow out the foreclosures. Now the cutting of those corners has led to the legal system forcing them to slow down the foreclosure machine. Now, clearly this is principally the servicers’ fault (as opposed to the lenders, although sometimes they are one and the same) and a good example of what I’ve discussed here many times previously: the servicers are over-loaded and don’t have the manpower (due to lack of financial resources) to process all of these foreclosures. So they cut corners and here we are. I’m not saying this isn’t the servicers’ fault – it most certainly is. They should bite the bullet, forgo profits, and hire and train enough people to do the job properly. I imagine, however, that this would result in such large losses that it’s not even possible. But, in any case, it’s ironic that the groups pressuring the servicers to speed up the process and blow out foreclosures have achieved the exact opposite: now this process will be going on for an even longer period of time. This is the legal system officially, albeit unintentionally, supporting extend-and-pretend (to the extent that it occurs) for the banks with exposure to these loans. The banks and servicers couldn’t have planned things any better if they tried. File under: Be careful what you wish for.

[davelj]

There is a certain irony in this situation. In an effort to appease the blow-out-the-foreclosures faction (who understandably want more and rapid foreclosures so that prices decline), among others, the servicers pushed harder than they were operationally able and cut corners to, well, blow out the foreclosures. Now the cutting of those corners has led to the legal system forcing them to slow down the foreclosure machine. Now, clearly this is principally the servicers’ fault (as opposed to the lenders, although sometimes they are one and the same) and a good example of what I’ve discussed here many times previously: the servicers are over-loaded and don’t have the manpower (due to lack of financial resources) to process all of these foreclosures. So they cut corners and here we are. I’m not saying this isn’t the servicers’ fault – it most certainly is. They should bite the bullet, forgo profits, and hire and train enough people to do the job properly. I imagine, however, that this would result in such large losses that it’s not even possible. But, in any case, it’s ironic that the groups pressuring the servicers to speed up the process and blow out foreclosures have achieved the exact opposite: now this process will be going on for an even longer period of time. This is the legal system officially, albeit unintentionally, supporting extend-and-pretend (to the extent that it occurs) for the banks with exposure to these loans. The banks and servicers couldn’t have planned things any better if they tried. File under: Be careful what you wish for.

[davelj]

There is a certain irony in this situation. In an effort to appease the blow-out-the-foreclosures faction (who understandably want more and rapid foreclosures so that prices decline), among others, the servicers pushed harder than they were operationally able and cut corners to, well, blow out the foreclosures. Now the cutting of those corners has led to the legal system forcing them to slow down the foreclosure machine. Now, clearly this is principally the servicers’ fault (as opposed to the lenders, although sometimes they are one and the same) and a good example of what I’ve discussed here many times previously: the servicers are over-loaded and don’t have the manpower (due to lack of financial resources) to process all of these foreclosures. So they cut corners and here we are. I’m not saying this isn’t the servicers’ fault – it most certainly is. They should bite the bullet, forgo profits, and hire and train enough people to do the job properly. I imagine, however, that this would result in such large losses that it’s not even possible. But, in any case, it’s ironic that the groups pressuring the servicers to speed up the process and blow out foreclosures have achieved the exact opposite: now this process will be going on for an even longer period of time. This is the legal system officially, albeit unintentionally, supporting extend-and-pretend (to the extent that it occurs) for the banks with exposure to these loans. The banks and servicers couldn’t have planned things any better if they tried. File under: Be careful what you wish for.

[davelj]

There is a certain irony in this situation. In an effort to appease the blow-out-the-foreclosures faction (who understandably want more and rapid foreclosures so that prices decline), among others, the servicers pushed harder than they were operationally able and cut corners to, well, blow out the foreclosures. Now the cutting of those corners has led to the legal system forcing them to slow down the foreclosure machine. Now, clearly this is principally the servicers’ fault (as opposed to the lenders, although sometimes they are one and the same) and a good example of what I’ve discussed here many times previously: the servicers are over-loaded and don’t have the manpower (due to lack of financial resources) to process all of these foreclosures. So they cut corners and here we are. I’m not saying this isn’t the servicers’ fault – it most certainly is. They should bite the bullet, forgo profits, and hire and train enough people to do the job properly. I imagine, however, that this would result in such large losses that it’s not even possible. But, in any case, it’s ironic that the groups pressuring the servicers to speed up the process and blow out foreclosures have achieved the exact opposite: now this process will be going on for an even longer period of time. This is the legal system officially, albeit unintentionally, supporting extend-and-pretend (to the extent that it occurs) for the banks with exposure to these loans. The banks and servicers couldn’t have planned things any better if they tried. File under: Be careful what you wish for.

[Author]

Posts