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