Question Regarding Foreclosures

[davelj]

[quote=BGinRB]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.[/quote]

The problem is that this is expensive for the servicer. When servicers price a contract for a particular securitization they assume a certain level of NODs, etc. because servicing defaulted mortgages is more expensive than servicing non-delinquent borrowers. Now, as you point out, the servicer receives late fees in these situations, but… the late fees merely compensate the servicer for the extra time and expense associated with dealing with delinquent borrowers. In the current environment, the late fees are not covering the additional cost of servicing the delinquent borrowers in aggregate. Which is why servicers are losing money left and right. Trust me, in most cases servicers want to get rid of these properties as soon as it’s practical.

[jpinpb]

In case you guys (and gals) haven’t read it, good article on shadow inventory.
Dr. Housing Bubble
Doesn’t address why some list and why some don’t, so sorry for not answering the question. It’s a good one. Why some go through quickly and others don’t. Maybe it has to do w/who owns the second?

[jpinpb]

In case you guys (and gals) haven’t read it, good article on shadow inventory.
Dr. Housing Bubble
Doesn’t address why some list and why some don’t, so sorry for not answering the question. It’s a good one. Why some go through quickly and others don’t. Maybe it has to do w/who owns the second?

[jpinpb]

In case you guys (and gals) haven’t read it, good article on shadow inventory.
Dr. Housing Bubble
Doesn’t address why some list and why some don’t, so sorry for not answering the question. It’s a good one. Why some go through quickly and others don’t. Maybe it has to do w/who owns the second?

[jpinpb]

In case you guys (and gals) haven’t read it, good article on shadow inventory.
Dr. Housing Bubble
Doesn’t address why some list and why some don’t, so sorry for not answering the question. It’s a good one. Why some go through quickly and others don’t. Maybe it has to do w/who owns the second?

[jpinpb]

In case you guys (and gals) haven’t read it, good article on shadow inventory.
Dr. Housing Bubble
Doesn’t address why some list and why some don’t, so sorry for not answering the question. It’s a good one. Why some go through quickly and others don’t. Maybe it has to do w/who owns the second?

[temeculaguy]

I don’t like that article for two reasons.

1. I believe that shadow inventory is bank owned homes being kept off the market. Extending it to homeowners who would like to sell, aren’t distressed but choose to not sell in this market, that has always existed, in more places than housing, that’s just buyer/seller sentiment. I also see significantly less brown lawn vacants that have already been taken back by banks just sitting forever unlisted, everyone that I stalked for nearly three years, did list and sell eventually, time lines varied, but now the brown lawns are so much more scarce in my hood than they were two years ago or a year ago. You can say it is a local thing but bank/governemnt conspiracy theories make no mention of zip code bias so I can extend my local research to the broader market on this issue.

2. using the foreclosure radar or other service to compare active listings and the total hits from the pay site, in the example it was 4 to 1 (1600 hits to 400 something listings). We’ve had this argument about the differences of the pay sites, their protocols, their stale and orphaned data and the vast differencs between the sites. Bad data leads to bad conclusions. The one consiracy theory I do believe is that pay sites exaggerate their data.

Maybe everything else is correct, I don’t know but once I see an argument based on something I have personally fact checked and disproved, I tend to ignore the rest. I’m silly that way

One other observation, while I know people who have lasted a long time not paying or gaming the system and playing the loan mod/short sale extendo game, I’ve also seen people get tossed quickly or at least the traditional timeline, it may have to do with who the servicer is and how good or backed up they are. We had a poster a few weeks back wanting to know if there was any recourse for their friend who was getting tossed in something like 3 months and felt cheated that he didn’t get the free 18 months he hears about.

[temeculaguy]

I don’t like that article for two reasons.

1. I believe that shadow inventory is bank owned homes being kept off the market. Extending it to homeowners who would like to sell, aren’t distressed but choose to not sell in this market, that has always existed, in more places than housing, that’s just buyer/seller sentiment. I also see significantly less brown lawn vacants that have already been taken back by banks just sitting forever unlisted, everyone that I stalked for nearly three years, did list and sell eventually, time lines varied, but now the brown lawns are so much more scarce in my hood than they were two years ago or a year ago. You can say it is a local thing but bank/governemnt conspiracy theories make no mention of zip code bias so I can extend my local research to the broader market on this issue.

2. using the foreclosure radar or other service to compare active listings and the total hits from the pay site, in the example it was 4 to 1 (1600 hits to 400 something listings). We’ve had this argument about the differences of the pay sites, their protocols, their stale and orphaned data and the vast differencs between the sites. Bad data leads to bad conclusions. The one consiracy theory I do believe is that pay sites exaggerate their data.

Maybe everything else is correct, I don’t know but once I see an argument based on something I have personally fact checked and disproved, I tend to ignore the rest. I’m silly that way

One other observation, while I know people who have lasted a long time not paying or gaming the system and playing the loan mod/short sale extendo game, I’ve also seen people get tossed quickly or at least the traditional timeline, it may have to do with who the servicer is and how good or backed up they are. We had a poster a few weeks back wanting to know if there was any recourse for their friend who was getting tossed in something like 3 months and felt cheated that he didn’t get the free 18 months he hears about.

[temeculaguy]

I don’t like that article for two reasons.

1. I believe that shadow inventory is bank owned homes being kept off the market. Extending it to homeowners who would like to sell, aren’t distressed but choose to not sell in this market, that has always existed, in more places than housing, that’s just buyer/seller sentiment. I also see significantly less brown lawn vacants that have already been taken back by banks just sitting forever unlisted, everyone that I stalked for nearly three years, did list and sell eventually, time lines varied, but now the brown lawns are so much more scarce in my hood than they were two years ago or a year ago. You can say it is a local thing but bank/governemnt conspiracy theories make no mention of zip code bias so I can extend my local research to the broader market on this issue.

2. using the foreclosure radar or other service to compare active listings and the total hits from the pay site, in the example it was 4 to 1 (1600 hits to 400 something listings). We’ve had this argument about the differences of the pay sites, their protocols, their stale and orphaned data and the vast differencs between the sites. Bad data leads to bad conclusions. The one consiracy theory I do believe is that pay sites exaggerate their data.

Maybe everything else is correct, I don’t know but once I see an argument based on something I have personally fact checked and disproved, I tend to ignore the rest. I’m silly that way

One other observation, while I know people who have lasted a long time not paying or gaming the system and playing the loan mod/short sale extendo game, I’ve also seen people get tossed quickly or at least the traditional timeline, it may have to do with who the servicer is and how good or backed up they are. We had a poster a few weeks back wanting to know if there was any recourse for their friend who was getting tossed in something like 3 months and felt cheated that he didn’t get the free 18 months he hears about.

[temeculaguy]

I don’t like that article for two reasons.

1. I believe that shadow inventory is bank owned homes being kept off the market. Extending it to homeowners who would like to sell, aren’t distressed but choose to not sell in this market, that has always existed, in more places than housing, that’s just buyer/seller sentiment. I also see significantly less brown lawn vacants that have already been taken back by banks just sitting forever unlisted, everyone that I stalked for nearly three years, did list and sell eventually, time lines varied, but now the brown lawns are so much more scarce in my hood than they were two years ago or a year ago. You can say it is a local thing but bank/governemnt conspiracy theories make no mention of zip code bias so I can extend my local research to the broader market on this issue.

2. using the foreclosure radar or other service to compare active listings and the total hits from the pay site, in the example it was 4 to 1 (1600 hits to 400 something listings). We’ve had this argument about the differences of the pay sites, their protocols, their stale and orphaned data and the vast differencs between the sites. Bad data leads to bad conclusions. The one consiracy theory I do believe is that pay sites exaggerate their data.

Maybe everything else is correct, I don’t know but once I see an argument based on something I have personally fact checked and disproved, I tend to ignore the rest. I’m silly that way

One other observation, while I know people who have lasted a long time not paying or gaming the system and playing the loan mod/short sale extendo game, I’ve also seen people get tossed quickly or at least the traditional timeline, it may have to do with who the servicer is and how good or backed up they are. We had a poster a few weeks back wanting to know if there was any recourse for their friend who was getting tossed in something like 3 months and felt cheated that he didn’t get the free 18 months he hears about.

[temeculaguy]

I don’t like that article for two reasons.

1. I believe that shadow inventory is bank owned homes being kept off the market. Extending it to homeowners who would like to sell, aren’t distressed but choose to not sell in this market, that has always existed, in more places than housing, that’s just buyer/seller sentiment. I also see significantly less brown lawn vacants that have already been taken back by banks just sitting forever unlisted, everyone that I stalked for nearly three years, did list and sell eventually, time lines varied, but now the brown lawns are so much more scarce in my hood than they were two years ago or a year ago. You can say it is a local thing but bank/governemnt conspiracy theories make no mention of zip code bias so I can extend my local research to the broader market on this issue.

2. using the foreclosure radar or other service to compare active listings and the total hits from the pay site, in the example it was 4 to 1 (1600 hits to 400 something listings). We’ve had this argument about the differences of the pay sites, their protocols, their stale and orphaned data and the vast differencs between the sites. Bad data leads to bad conclusions. The one consiracy theory I do believe is that pay sites exaggerate their data.

Maybe everything else is correct, I don’t know but once I see an argument based on something I have personally fact checked and disproved, I tend to ignore the rest. I’m silly that way

One other observation, while I know people who have lasted a long time not paying or gaming the system and playing the loan mod/short sale extendo game, I’ve also seen people get tossed quickly or at least the traditional timeline, it may have to do with who the servicer is and how good or backed up they are. We had a poster a few weeks back wanting to know if there was any recourse for their friend who was getting tossed in something like 3 months and felt cheated that he didn’t get the free 18 months he hears about.

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