Question Regarding Foreclosures

[temeculaguy]

http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.

[davelj]

[quote=temeculaguy]
One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. [/quote]

Hit the nail on the head. I’m thinking that mortgages held by actual banks – as opposed to Fannie/Freddie and mortgages that end up in securitizations (and thus not serviced by banks) – make up less 25% of the mortgages in default and foreclosure.

The single biggest problems (with respect to foreclosures getting to market) are: (1) the servicers are massively understaffed and not properly trained to handle the current volumes, (2) the servicers are losing money hand over fist and thus don’t have the resources to properly staff up (more losses!), and (3) the servicers are scared of lawsuits if they don’t dot every “i” and cross every “t”. And, finally, they’ve got the government trying to tell them what to do, some of which violates the contractual agreements they have with the trusts. So, the servicers are totally fucked… and thus moving like molasses.

[davelj]

[quote=temeculaguy]
One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. [/quote]

Hit the nail on the head. I’m thinking that mortgages held by actual banks – as opposed to Fannie/Freddie and mortgages that end up in securitizations (and thus not serviced by banks) – make up less 25% of the mortgages in default and foreclosure.

The single biggest problems (with respect to foreclosures getting to market) are: (1) the servicers are massively understaffed and not properly trained to handle the current volumes, (2) the servicers are losing money hand over fist and thus don’t have the resources to properly staff up (more losses!), and (3) the servicers are scared of lawsuits if they don’t dot every “i” and cross every “t”. And, finally, they’ve got the government trying to tell them what to do, some of which violates the contractual agreements they have with the trusts. So, the servicers are totally fucked… and thus moving like molasses.

[davelj]

[quote=temeculaguy]
One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. [/quote]

Hit the nail on the head. I’m thinking that mortgages held by actual banks – as opposed to Fannie/Freddie and mortgages that end up in securitizations (and thus not serviced by banks) – make up less 25% of the mortgages in default and foreclosure.

The single biggest problems (with respect to foreclosures getting to market) are: (1) the servicers are massively understaffed and not properly trained to handle the current volumes, (2) the servicers are losing money hand over fist and thus don’t have the resources to properly staff up (more losses!), and (3) the servicers are scared of lawsuits if they don’t dot every “i” and cross every “t”. And, finally, they’ve got the government trying to tell them what to do, some of which violates the contractual agreements they have with the trusts. So, the servicers are totally fucked… and thus moving like molasses.

[davelj]

[quote=temeculaguy]
One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. [/quote]

Hit the nail on the head. I’m thinking that mortgages held by actual banks – as opposed to Fannie/Freddie and mortgages that end up in securitizations (and thus not serviced by banks) – make up less 25% of the mortgages in default and foreclosure.

The single biggest problems (with respect to foreclosures getting to market) are: (1) the servicers are massively understaffed and not properly trained to handle the current volumes, (2) the servicers are losing money hand over fist and thus don’t have the resources to properly staff up (more losses!), and (3) the servicers are scared of lawsuits if they don’t dot every “i” and cross every “t”. And, finally, they’ve got the government trying to tell them what to do, some of which violates the contractual agreements they have with the trusts. So, the servicers are totally fucked… and thus moving like molasses.

[davelj]

[quote=temeculaguy]
One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. [/quote]

Hit the nail on the head. I’m thinking that mortgages held by actual banks – as opposed to Fannie/Freddie and mortgages that end up in securitizations (and thus not serviced by banks) – make up less 25% of the mortgages in default and foreclosure.

The single biggest problems (with respect to foreclosures getting to market) are: (1) the servicers are massively understaffed and not properly trained to handle the current volumes, (2) the servicers are losing money hand over fist and thus don’t have the resources to properly staff up (more losses!), and (3) the servicers are scared of lawsuits if they don’t dot every “i” and cross every “t”. And, finally, they’ve got the government trying to tell them what to do, some of which violates the contractual agreements they have with the trusts. So, the servicers are totally fucked… and thus moving like molasses.

[socrattt]

[quote=temeculaguy]http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.[/quote]

TG, I think it is quite obvious there is much more than we know going on with the market. What happen to the late spring inventory that banks were to release when the moratorium was lifted? I have friends now going on 18 months of no mortgage payments and the bank still hasn’t foreclosed.

Do you really think the banks are that stupid? I don’t. If one guy with common sense can come up with a program to get rid of the $10 paper pushers and hire a few hundred employees to run the bad assets department, I think things would change instantly. The banks are leaving their team of half educated paper pushers because they know it slows the process down.

I know that that there are third party investors involved, but I believe they have no say so in the assets. The banks and the FED are the ultimate authority when it comes to the release of inventory. The FED wants to capitalize on the money lent and the banks want as much money possible per asset. It’s not a conspiracy, it’s a fact!!!!

[socrattt]

[quote=temeculaguy]http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.[/quote]

TG, I think it is quite obvious there is much more than we know going on with the market. What happen to the late spring inventory that banks were to release when the moratorium was lifted? I have friends now going on 18 months of no mortgage payments and the bank still hasn’t foreclosed.

Do you really think the banks are that stupid? I don’t. If one guy with common sense can come up with a program to get rid of the $10 paper pushers and hire a few hundred employees to run the bad assets department, I think things would change instantly. The banks are leaving their team of half educated paper pushers because they know it slows the process down.

I know that that there are third party investors involved, but I believe they have no say so in the assets. The banks and the FED are the ultimate authority when it comes to the release of inventory. The FED wants to capitalize on the money lent and the banks want as much money possible per asset. It’s not a conspiracy, it’s a fact!!!!

[socrattt]

[quote=temeculaguy]http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.[/quote]

TG, I think it is quite obvious there is much more than we know going on with the market. What happen to the late spring inventory that banks were to release when the moratorium was lifted? I have friends now going on 18 months of no mortgage payments and the bank still hasn’t foreclosed.

Do you really think the banks are that stupid? I don’t. If one guy with common sense can come up with a program to get rid of the $10 paper pushers and hire a few hundred employees to run the bad assets department, I think things would change instantly. The banks are leaving their team of half educated paper pushers because they know it slows the process down.

I know that that there are third party investors involved, but I believe they have no say so in the assets. The banks and the FED are the ultimate authority when it comes to the release of inventory. The FED wants to capitalize on the money lent and the banks want as much money possible per asset. It’s not a conspiracy, it’s a fact!!!!

[socrattt]

[quote=temeculaguy]http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.[/quote]

TG, I think it is quite obvious there is much more than we know going on with the market. What happen to the late spring inventory that banks were to release when the moratorium was lifted? I have friends now going on 18 months of no mortgage payments and the bank still hasn’t foreclosed.

Do you really think the banks are that stupid? I don’t. If one guy with common sense can come up with a program to get rid of the $10 paper pushers and hire a few hundred employees to run the bad assets department, I think things would change instantly. The banks are leaving their team of half educated paper pushers because they know it slows the process down.

I know that that there are third party investors involved, but I believe they have no say so in the assets. The banks and the FED are the ultimate authority when it comes to the release of inventory. The FED wants to capitalize on the money lent and the banks want as much money possible per asset. It’s not a conspiracy, it’s a fact!!!!

[socrattt]

[quote=temeculaguy]http://www.cnbc.com/id/32630317

diana just released an article referencing the conspiracy theories on blogs about banks sanbagging inventory. FWIW I do not believe they are sandbagging properties they have taken back already, based on my research, they sell them once they process them, however I do think they are purposely moving slow on the actual foreclosures because it pencils out better. The article points out a couple of things, that it takes a while to process a foreclosure, that their goal is to not foreclose if they can find another option and finally that the final step in the forclosure process is down about 50% in the past few months as they were waiting on yet another gov’t program. We’ve seen this happen a few times, as soon as some new program is in the pipeline, the banks hold off on the final step, then after they realize it’s mostly smoke and mirrors, they start to foreclose again.

One element the conspiracy theorists fail to adress is that most of the banks conducting the forclosures are just servicers of the loan, it isn’t their money to lose, it’s a third party investor or many third party investors. The other issue that never gets addressed is that there are many banks in competition, who would love to screw each other. If I was bank A and I could screw bank B and C out of existence by dumping all my foreclosures at once, I’d do it, so would they. But if I was bank A and I could foreclose now and lose my investors 300k or modify the loan, take in a grand less per month for the next three years, then back to full price and even tack back on the lost interest. I’d lose my investors 36k at most and probaby 10k or less if it’s the interest on the mod, I’d try that one first, because Bank A’s job isn’t to correct the market, it isn’t to decide who to reward, it isn’t to let patient and prudent people buy houses, bank A’s job is to make money or lose as little as possible.[/quote]

TG, I think it is quite obvious there is much more than we know going on with the market. What happen to the late spring inventory that banks were to release when the moratorium was lifted? I have friends now going on 18 months of no mortgage payments and the bank still hasn’t foreclosed.

Do you really think the banks are that stupid? I don’t. If one guy with common sense can come up with a program to get rid of the $10 paper pushers and hire a few hundred employees to run the bad assets department, I think things would change instantly. The banks are leaving their team of half educated paper pushers because they know it slows the process down.

I know that that there are third party investors involved, but I believe they have no say so in the assets. The banks and the FED are the ultimate authority when it comes to the release of inventory. The FED wants to capitalize on the money lent and the banks want as much money possible per asset. It’s not a conspiracy, it’s a fact!!!!

[werewolf34]

I’m amazed that people still think banks and servicers aren’t taking advantage of the existing system.

Who wins if the REOs process quickly?

Who loses if the REOs process quickly?

The only thing I can say with certainty is that real estate is a crooked business. I hate to play but have no real choice.

[werewolf34]

I’m amazed that people still think banks and servicers aren’t taking advantage of the existing system.

Who wins if the REOs process quickly?

Who loses if the REOs process quickly?

The only thing I can say with certainty is that real estate is a crooked business. I hate to play but have no real choice.

[werewolf34]

I’m amazed that people still think banks and servicers aren’t taking advantage of the existing system.

Who wins if the REOs process quickly?

Who loses if the REOs process quickly?

The only thing I can say with certainty is that real estate is a crooked business. I hate to play but have no real choice.

[werewolf34]

I’m amazed that people still think banks and servicers aren’t taking advantage of the existing system.

Who wins if the REOs process quickly?

Who loses if the REOs process quickly?

The only thing I can say with certainty is that real estate is a crooked business. I hate to play but have no real choice.

[Author]

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