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FORECLOSED....OWNER/RENTER to SQUATTER/TRESPASSER.. Part 1

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

Millions of people across the United States are in trouble. One of every four (4) homes has a problem.   Some are there unexpectedly and others are there strategically. Trouble for anyone is not good regardless of the cause. Either way, here is some data that you need to know if you are going to navigate through foreclosure and all its demands.

If you are negotiating a loan modification, you are dealing with certain departments and sometimes two or three. All are run separately and answer to themselves. These departments  are far from being efficient or being fair or helpful. Quite the contrary, they repulse users and inquirer's and cost everyone time, money and undue emotional/mental anguish/stress. I cannot emphasize this enough.

Be advised that the lenders or banks LEGAL DEPARTMENT (s), are a separate entity........, they can and will foreclose on you without further notices to you or any other departments. Yes, in the middle of negotiations, they can have a Trustee sale and sell your property while you are waiting to hear their latest responses to their or your requests. Even if you are on a TRIAL MODIFICATION, until it becomes permanent and you are given a new note with terms, YOU HAVE NO DEAL. ANY MONEY PAID IN GOES TO THEM. You are thinking hope and resolution and they are thinking how to mitigate loss and make money anyway they can. We are not nor have we ever been on the same page. Read your paperwork if you disagree.....

Even after the foreclosure by LEGAL, you will continue to receive notices from other departments  encouraging you that your negotiations are moving foreword and or additional data is needed. They will give you a deadline to comply too. I don't have to tell you the horror of finding out otherwise. THINK: BEING STABBED IN THE BACK...........It is very intrusive and offensive.

SIDEBAR: How President Obama, Congress, Senators, Assemblyman and all the rest of our supposed leaders can let this happen makes you wonder at the least. When things are running right, we do not need leadership. When things are not going well, good leadership is priceless. Shame on anyone who isn't taking a public stand against what is going on and kudos to those that have spoken up. You know who you are.........

WORTH NOTING: Our tax dollars went to bail banks out so they can turn around and come after us? Is everyone nuts?

A unusually high number of foreclosures (and getting higher) are on people who did not expect them because they were led to believe otherwise. That's right......you are expecting a favorable answer from the bank and instead, your loan adjusts higher, or you are told you are spending too much for food or clothes and their answer to all this...we are taking the property back.......

Did you know that the bank will get their monies from the sale and then qualify to get 80% more money which is the difference between the sale amount and the amount you owed them? Read on...........

EXAMPLE: Your mortgage amount is $500K. The trustee sale brings in $200k. There is a difference of $300k. Lenders apply for 80% of the difference or $240k and get it. TOTAL TAKE: $440k. If you calculate all the interest collected up front when the loan was made, I am not sure you will find any losses. Many ways for lenders to recapture $$$. No way for you to recapture yours.........

That is why they will not sell your own house back to you or reduce your principal. They wont get the recapture money.....But a stranger can come in and buy it at fair market value...only not you .....unless you lie, cheat, and steal to do it. Lenders have Arms length agreements for you to sign preventing this.

The current foreclosure market is very lucrative and there are many people making tons of money from this debacle. It makes you wonder if that is the reason it is lasting so long....its so lucrative. Of course, making money with people as the collateral damage is highly questionable to me. If you do not agree, then let everyone do whatever they want to make a buck and watch the end of the world take place. 

Go to Part TWO (2) to find out what happens to you if you are a owner or a tenant who gets foreclosed on........

                             ALSO AVAILABLE AT MY ACTIVERAIN HOME PAGE BLOG PARTS 1...2....3

Comments (60)

Paul Todd
Mentone Cabins Realty, LLC - Mentone, AL
Vacation and Second Homes Sales and Management - Mentone Alabama

Richie,

Good thoughts.  The home onwer does not win and is ot in the place to win.  Oh it is their fault anyway for getting that subprime loan.  LOL

Thanks for the information. 

Jun 11, 2010 05:40 AM
Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Good article on what is happening.  I would love to see what the banks are making on all of this. 

Jun 11, 2010 06:02 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hey Paul........Sure.....every time my kids got into trouble when they were growing up, I knew that they played a part...some part in the mischief. Yes, homeowners went along with liar loans and also pulled out equity via HELOCS, but those things were presented and sold to them. THINK: They took the drugs, BUT the drug dealers sold them DRUGS TO TAKE...... thank you for your contribution......best

 

William...my pal who is doing great things in his neck of the woods......I thank you for your presence on this post. If it is right and you believe in it, take it where you want it to go.....always my best

Jun 11, 2010 06:07 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Susan......I am only saying what every single agent, escrow officer, title rep and bank employee already knows....., the government knows, and the CEO's knows..........I want to see change and before change, repentance for this despicable behavior being layed on people who cannot defend themselves. Even when I am on the phone negotiating a short sale or loan mod, you really cannot say what you want to say for fear of retribution....you know like your deal got lost? My clients have been injured and I will not stand for it......If banks would take a committed helping stance....then hundreds of thousands of people would  praising them, then there would be a path beaten to their door, their stocks up and the world is theirs.....I would become a supporter and bring them all my business. They missed this opportunity..... and chose to play DICTATOR....and we all know what happens to them...thank you

Jun 11, 2010 06:21 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Richie, that is just too outrageous for words.  Oh, and not top mention scary.  Yikes!

Jun 11, 2010 09:25 AM
Esko Kiuru
Bethesda, MD

Richie,

The mortgage loan modification business is such a mess in most cases that you wonder if it's so by design. Just sayin.

Jun 11, 2010 09:34 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Patricia.....an act against my clients is an act against me......Just imagine a Realtor doing anything against his license and the Code? You would be on a countdown to lose it.....But let a bank who is supported by the government, lie, badger, beguile, trick, confuse, confound and whammy someone and we all just accept it? Whoa

Thank you Patricia

Jun 11, 2010 09:36 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Esko....there is wisdom in you observation.......sometimes keeping things in a mess is a cloud cover or a smoke screen for dastardly, under the table...back room dealing.....If we are voting on your comment, I vote it is deliberate.

Best and thanks for just sayin......

Jun 11, 2010 09:38 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Richie: Great and informative post! As you  can see by the response--a much needed rundown on just how despicable the banks are being--it's all about the bottom line for them. I know someone who wrote to his congressman and got a modification with oversight by the OCC....he feels that the modification will go through--will have to see what happens there. Meanwhile thanks for being on top of the whole mess and keeping us informed too.

Jun 11, 2010 04:56 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Banks have been amazing me for the longest time and the fact that the government can't see it is even more amazing.

Jun 11, 2010 07:37 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Paula.....your comment encourages us all. If this was not happening, I would be writing on something else. My clients are very decent people. To see them betrayed, mistreated and suffering as a result of a scam perpetrated by BofA is just too much. My very best to you........

Todd......it amazes us because we have accepted them as a positive influence in the home buying process for generations now. They were revered, looked up to and always a father figure symbol. During the great depression as well as the during the "GRAPES OF WRATH" period, they systematical foreclosed and hounded individuals without restraint forcing people into personal inner deep recessions. Today, they are the new boogieman. Thank you

Jun 12, 2010 02:21 AM
Dan Benefield
Benefield Realty - Decatur, GA

Great post Richie. Thanks for all the thought and time you put in to this. Very informative.

Jun 12, 2010 07:44 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Dan...it has even more value now that you have visited and commented....thank you too

Jun 12, 2010 08:13 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Ritchie - In Connecticut a foreclosure cannot occur until there is an opportunity for a court Mediation session.  The party being foreclosed does not have to hire an attorney (although if they can afford one, it is certainly better, I think) and this means that nothing sneaky like this can occur.  I would encourage anyone living in a state that doesn't have this in place to write to your legislators and demand it.  Google Connecticut's Foreclosure Mediation Process.  Courts can require the lenders to reduce the amount of the mortgage not just lower the payments.  

Jun 12, 2010 05:42 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Gail.....Black Rocks  finest.......It is very expensive to live California today for many reasons. Mismanagement of this magnificent state is probably the main cause. You just gave Californians another good reason to retire or live elsewhere.....Connecticut being a beautiful state to consider. Regarding foreclosures......When the systems that are in place become more important than the people who created them,.......what then? Shame on anyone who in the name of money or the law.....steps on people to live or have a better life.....anyone who is doing that or is a part of that, is VERY POOR INDEED. No amount of money will help them....thank you

Jun 13, 2010 03:46 AM
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Richie, great info there. If the home gets sold at foreclosure auction does the same 80% reimbursement apply?

Jun 13, 2010 04:55 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Bill...very good question and I am not able to answer it to discussion standards. My focus was on the injustice and collateral damages..... and there is so much going on here (as your questions demonstrates), that a panel or hearing is in order to get it all out in the light. However, there are those that do not want their business activities examined less we find that they are not up to human being standards..........thank you Bill

Jun 13, 2010 05:09 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Richie, great explanation.  The banks are still finding ways to make money and still fooling the homeowner.  Not a good situation.  I'd like to know the answer to Bill's question.

Jun 13, 2010 02:41 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Kay....me too. Perhaps someone can comment further. With the banks...It is appalling to find out what comes out of Pandora's box once it is opened. Just like all the small print in loan docs that they expect you to read, understand and then sign with little or no warning, the banks have regulations that appear to regulate but in reality provide parachutes in the event of something going wrong for them. The bail-outs alone tell us that they are above the rules..........Meanwhile, my clients, who really only represent a segment of the population (statistically) are scrambling to find a place, and recover from the stigma of being evicted in addition to having to start all over plus the stigma of bad credit reporting for the next several years......if we are going to bail out anyone, I vote for the consumer......Thank you Kay

Jun 13, 2010 03:10 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

WELL........it was a good run and post. The comments and response were of the highest quality because it came from people who really cared. For a true lover of Real Estate and people, I would expect no less. In every part of each of our lives, there are opportunities that present themselves from minute by minute to daily deliveries. That is when we....as individuals can demonstrate who and what we are. It can be your finest hour and the reason why you were created. Those moments are to be cherished and sought after. Wrong actions by anyone, once identified... have to be exposed, corrected and redirected to do good....not harm. The lenders are out of control and people are suffering for it... and talk will not eliminate pain, sorrow or afflictions. The coveted name of the HUMAN RACE is teetering on the brink of destruction if we do not take a stand for what we know is right in our hearts when the opportunities present themselves.....no matter what the risk involved is to do so. Failure to respond....earns us the title of the INHUMAN RACE and from there, we join the animal kingdom having lost the privilege of being made in the image of God.......thank you all very much for lending your hearts to the subject matter.

Highest and best regards......

Jun 14, 2010 03:39 AM