Comments on: Homeowner Defaults: The Inevitable Truth Behind the Mystery

By: Travis

Travis — Thu, 04 Feb 2010 17:11:01 +0000

I agree with Charlie. I went to a seminar for r/e agents last week put on by the former head loss mitigator for Indymac Bank who was selling a kit on the best way to get a short sale closed for a client. Several of his statistics blew me away. 12 Million foreclosures last year, only 5 million sold. 20 million coming this year. average time from first missed pmt. to foreclosure initiation- 18mo. Average loss mitigation (in short sales) accepted last year- 53 cents on the dollar for firsts and 5 cents on the seconds. Look out the front door to your left and look to your right. Chances are one of them is not making his payment.

By: sierra

sierra — Thu, 04 Feb 2010 16:29:40 +0000

4 million ARM mortgages (and other dastardly predatory mortgages sold to the naive public) will come due in 2010-2011….Banks will continue until desperate to keep past due mortgages on their books to show quarterly profits….but, when the rock hits the hard place for both banks and mortgage holders whether due to loss of job or banks needing to “clean their books” or no future lending…the SH*& will hit the fan….

There is NO ESCAPING this……

(I like the line about Harry and Kudlow!! Now there (KUDLOW) is a piece of work!!!!)

Today, 4th, the market is “chewing on its tail!”

By: Chris

Chris — Wed, 03 Feb 2010 20:12:09 +0000

Bill was exactly right – its a pride issue. Many people feel the moral obligation to pay their mortgage. But as things deteriorate, and their dollar has to be stretched even further, this moral obligation will fly out the window as they see their peers and neighbors walking away.

In the future I believe the graph of people walking away from their mortgages will look like an exponential graph.

By: nobodyinLV

nobodyinLV — Wed, 03 Feb 2010 20:07:14 +0000

Be very careful of defaulting on a mortgage. There is such a thing called a Deficiency Judgement, which basically give the lender the right to pursue you according to the state law. You have been warned.

By: MoguIsBack

MoguIsBack — Wed, 03 Feb 2010 19:22:52 +0000

“gotta preempt harry here,”

Don’t worry, Harry doesn’t get here until he’s done drinking his soy latte and memorizing the Kudlow column. Only then does his limo take him back to the office.

By: Mark

Mark — Wed, 03 Feb 2010 19:11:41 +0000

With so many people that can make their payments walking away and having their credit damaged for up to 7 years there will be that many less potential buyers in the near future. To remedy this you can be sure there will soon be the MFFA. The Mortgage Forclosure Forgiveness Act of 2010, wiping clean all foreclosures from credit histories from 2005 thru 2011.

As insane as this sounds I will bet it is the next step the government takes to save the unsaveable housing sector. With 25% percent of potential buyers credit ruined it will happen. More moral hazzard!

By: Trent

Trent — Wed, 03 Feb 2010 19:05:58 +0000

gotta preempt harry here,

Feb. 3 (Bloomberg Multimedia) — The U.S. may lose 824,000 jobs when the government releases its annual revision to employment data on Feb. 5, showing the labor market was in worse shape during the recession than known at the time.

By: charlie

charlie — Wed, 03 Feb 2010 18:40:22 +0000

Another explanation is people are no longer making mortgage payments and waiting to get evicted. The banks are taking a long time to formally file a foreclosure. The banks prefer to add what’s owed to them as principal that will be paid. That way they don’t show a loss. If they foreclose, it’s a way of admitting the mortgage will never get current.