Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

management — Tue, 10 Jun 2008 11:00:00 GMT

REgan Economics at its best If the old guy was in power today, his approach would have been inverted. Common Sense approach of offering all owner occupied property owners a special loan mod allowing a payment not based on ltv, but based on income verified by a 4506 and bank statements for 12 months yeilding a 33% debt to income ratio. The defered payment would have been kept in a special escrow account for a term defined by the owner not the lender or until the house sells in the future. Homeowners keep their hope based on average of 10 years before they move up in a new property. By the way, equity always returns in its new cycle. If this were in effect Jan 2008, foreclosures and non performance would cease to exist. The first of the following month, all financial systems will be in full working order. Excess cash will be spread thruout the land, restaurants busy again, shoppers return to do their stuff, 6dollars a gallon for the fillup,, "no biggy". vacationers on the highways, health insurance pricing would be affordable. The dollar prices ahead of the Euro. The return of Private Label. If only FNMA's debt to income ratios are finally understood moving foward.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

njdlmkr — Sat, 07 Jun 2008 11:00:00 GMT

I work for one of the large banks as a loan officer and the problem is corporate mentality and the many layers of vice-presidents who have to justify their position in the company. We spend more time on nonsense e-mails and webanars than trying to find new business. I can see where banks who own foreclosures can mess up because the chain of command is so long there's no way anything productive is going to happen with a vacant property. My company, at least, has lost touch with the real world as we are mired in regulations that do nothing for the consumer, only justify the corporate ranks existence.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

Barry — Sat, 07 Jun 2008 11:00:00 GMT

With reference to anonymous,yes not all real estate agents, but many of them unethical, they offices were used as a one stop one shop, e.g banking ,appraisal, title attorney etc, sold homes as is,( 6%comm) demanded kickbacks Greed or -no business to anyone they did busness with -their sold clients homes with major defects ( heating systems,bad roofs,crack foundations etc), the clients had to take an equity loan or private loan through contractors to correct the problems, more debt for the client besides the 1st & 2nd mortgage. This industry has been getting a free ride, free of blame in this crisis,and it is time their are investigated, some Mortgage Brokers has been corrupt, but most barely made 2% comm, but yet these RE agents expected you to share with them what ever little was made. The mortgage brokers has been taking the major hit for all the ills in an industry where the banks, appraisers, wall street has been free of blame most of the time. (Should a car sales man be blamed for the way Gm cars are made) Loans were presented to the underwriters, they underwrte the loans, whatever happen after the loan was sold is a matter for the banks and Wall street as to way they were packeged as securities. Today some banks and SOME in the real estate industry and many corrupt investors are working hand in hand , many of the same investors who over inflated rip the industry off with their practises,the banks are still doing business with them, so the problems willl never stop.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

Kevin Burk — Fri, 06 Jun 2008 11:00:00 GMT

Thank you for your expose! I could not agree more. We live in an upscale community (housing prices are 6-7 hundred thousand) in Phoenix, AZ and we have a foreclosure that is listed far below those figures. The current condition of the front and back yards make it impossible for the lender to get even their undervalued price and they don't care, unbelievable! These banks that were there when prices were on the rise and we were willing to mortgage ours and our children's futures to them, don't seem to have the same level of interest in our community now that some of the responsibility has been transferred to them. Again, thanks for bringing this to everyone's attention.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

REO Agent in California — Fri, 06 Jun 2008 11:00:00 GMT

I agree with Kevin, how can you possibly generalize all REO real estate agents from all over the country because of this one property? Wow it is published media articles like this that bring the entire indudstry down. I am a hard working REO agent who spends 18 hours a day trying to keep up with these foreclosures and short sales. We have to pay for all the clean up and maintenance up front and WAIT 30 days to get paid by the banks who own them. Why don't you check around in other real estate markets across the U.S. before lumping all of us together as "non caring" real estate agents!!!

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

Anonymous — Fri, 06 Jun 2008 11:00:00 GMT

Have you ever been to Detroit, Buffalo, Baltimore or any midwest or northeast city that lost significant population (40% or more) in the 1960s and 1970s. What those cities looked like in the late 70s and the 80s is similar to what you are describing in this article, only the architecture is different. For example Detroit has many borded up houses that appear to be relatively large and probably belonged at one time (through the 50s and early 60s) to relatively high paid people who worked for the auto companies. What happened was that as demand for housing declined, the value of the houses declined to an amount below the mortage and subsequent owners abandoned the properties. Mortgage holders refused to foreclose and taxes were not paid, so the city became the default owner. The problem was that the city did not have the resources to maintain the properties it now owned, an no-one wanted to buy them, so they became weed infested crack houses.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

Steve Metz — Fri, 06 Jun 2008 11:00:00 GMT

The lenders have no one to blame but themselves. Georgia has the worst lending laws next to AK. The original home owner probably went though a morgtage broker in Califorina who was able to get an inflated appraisal on the property for $250.00. A scam loan was sold to the home owner and when the payments almost doubled the home owner could not pay and the home was forclosed. The bank being cheap got a BPO from the Realtor for $35 instead of getting an appraisal from a good appraiser for $350. The bank has no idea of the real worth of the property and realy does not want to know. They have gotten thier fees and that is all they care about. There is no code/zoning or enforcment in south Georgia you folks must be from up north. Costs to secure the place and remove the trash would be less then $200. The banks still do not want to pay that. These banks are making money on these forclosures or they would not be doing them. If good laws were in place and enforced the bank would not have been able to make the scam loan to the homeowner and the homowner would problaly still be in the home. I am a Real Estate Appraiser down here in south Georgia I see this kind of thing all the time.

RE:Just One Little House, but a Good Indicator of Foreclosed Properties Nationwide

Anonymous — Fri, 06 Jun 2008 11:00:00 GMT

I wish these articles would stop generalizing. I am a real estate agent who handles REO properties in my state along with many other agents and I haven't found one property yet that is unsecure, that's the first thing that is done. I tried to see one last week and was told I couldn't because they had to get someone in to take the boards off the door. One incident doesn't not account for all. PLEASE STOP LUMPING ALL states, local real estate market, real estate agents, brokers, etc. into one big ball. There are differences on all those levels.