Delinquent mortgage squatting time sets new record

Dec 8th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by ChicagoWalkAway
2011-12-08 07:25 AM

Since it’s taking so long for the lenders to kick out deadbeat loanowners, the name of this post should be FOREVER-CLOSURE. 

If fact, you should poll delinquent loan-owners (let’s say, over 700 days) and devote an entire thread to their stories of limbo, hopes,despair, and happiness.

They could talk about how they were victimized, led astray and run amok, when in reality all they did was game the system and hit the ghetto lottery.

The thread could generate a record-setting number of astute observations from angry renters, and bragadocious borrowers. 

Surely some observers would moralize about the pending destruction of our collective ethics, while others would go on about how banks were the devil or they could now afford to get Timmie that much-needed organ transplant. 

Or it could be a major yawn, because as B.B. King once sang, “That’s a story everybody knows”.

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Astute Observation by IrvineRenter
2011-12-08 08:08 AM

Are you still in the house? How long has it been (or how long did you get?)

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Astute Observation by Partyboy
2011-12-08 11:17 AM

I don’t think CWAs implication that everyone who walks away from their house had a crazy sob story to tell.  Most people who have discussed their situation on this blog have kept it pretty factual and I have not seen many (if any) victimized sob stories.  I think most people who walked away just looked 5 years ahead and thought about whether they would be better off walking now or sticking it out (if even an option) for the next several years. 

As far as anecdotal information goes, I made my last payment on 8/1/2008 and the trustee sale was on 6/12/09.  The original purchase price was $512,000 and the sale price at auction was $212,000.  We rented for a little over 2 years for $2000 less than the mortgage ($1550 compared to $3500) and bought another house in August of this year (30 year fixed at 4.25%).  We feel very fortunate to be back in a house and have been quite humbled by the past few years.  I would have to think this is a more prevalent feeling from those who have walked away in the past few years than feelings of victimization and bragadociousness.

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Astute Observation by Perspective
2011-12-08 12:33 PM

Did you use an FHA loan?  Were you precluded from using a Fannie/Freddie loan because 5-7 years hadn’t elapsed?  Were you required to prove the foreclosure was due to some hardship?

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Astute Observation by Partyboy
2011-12-08 01:50 PM

VA loan.  I believe we would not have been eligible for any other program because the minimum is 3 years post foreclosure.  If the house we were foreclosed on was bought with a VA loan it would have probably disqualified us as well but fortunately it wasn’t.  The only requirements were income and credit.  We both had to have credit scores above 660 (I think) and we did.  I was suprised to see that mine was 670 and my wife’s was 690 only two years after the foreclosure.  We only had the cars as debt and even though we could have paid them off, we didn’t solely to reestablish a decent credit score.  I guess all of the rumors out there about how a foreclosure will trash your credit score are exaggerated.  I’m not sure what the income requirements were but when the loan officer (who was great, IMO) asked me how much I wanted to borrow I told him no more than $350,000 and he said we easily qualfied for that amount.  We ended up borrowing $290,000 and ended up with a PITI of ~ $1850.  It really makes a big difference when you are in a low tax rate area with no special assessments.

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Astute Observation by wheresthebeef
2011-12-08 03:57 PM

Good for you Partyboy, thanks for sharing your story.  My good friend hasn’t made a payment since November of 2010 and is still in his house.  He bought in 2005 with little down and has not received any loan mods due to his negative equity position.  He thinks it will be the end of the world when the day comes when he is forced out of the house.  Like you said, rent for two years and then buy again if you choose.

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Astute Observation by ChicagoWalkAway
2011-12-08 04:46 PM

Actually, I thought it would be interesting to hear a series of personal experiences that would run the gamut from disgustingly predatory, to heartwrenchingly tragic, to utterly hilarious.

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Astute Observation by ChicagoWalkAway
2011-12-08 04:44 PM

Naw.

I hit the bricks, flew the coop, and got the hell outta dodge…

My new crib is paid off, mortgage-free in a nicer part of town where they are building 500 boat slips right on the lake.

I has been over 2 years since I last paid, but technically it’s been 26 months and counting since the bank has not yet foreclosed.

I may just short sale, or do nothing I really don’t care since my credit is shot anyway.

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Astute Observation by HydroCabron
2011-12-08 01:28 PM

Or it could be a major yawn, because as B.B. King once sang, “That’s a story everybody knows”.

Were all squatters, bankers, and lobbyists - being nothing more than bags of misallocated carbon - to be ground up and used for fertilizer, it would grant some infra dig satisfaction to decent people, but quickly become a mundane footnote in the history of this mess.

Yawn.

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Astute Observation by alan
2011-12-08 11:40 AM

NICE granate…

To me, a big problem with this is that it is a lower floor unit.  That alone is a 20K discount that granate can’t solve.  Top floor is always best becuase I hate hearing people walking above me.  Less than 800 sq ft, maybe OK for Tokyo.

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Astute Observation by Pascal
2011-12-08 12:13 PM

granite*

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Astute Observation by Perspective
2011-12-08 12:30 PM

A close friend of ours owns at Ave1, and she was involved in an HOA action and private lawsuit fighting a lower unit owner’s complaints that their walking on wood floors cause excessive noise for him.

Fun!

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Astute Observation by jb
2011-12-08 01:40 PM

HOA action and private lawsuit? That’s a rarity winkRight down there with “special assessment”.

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Astute Observation by Perspective
2011-12-08 03:12 PM

Despite a lot of foreclosure and short sale activity in our neighborhood, the master HOA’s finances are on track and the sub HOA’s reserves have grown too large.  Our sub HOA dues were lowered a few dollars for 2012 as a result.

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Astute Observation by Anonymous
2011-12-08 04:27 PM

Analyst: Calif. birth rate a 24-year low
Published on December 8th, 2011

http://lansner.ocregister.com/2011/12/08/analyst-calif-birth-rate-a-24-year-low/155242/

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Astute Observation by SanJoseRenter
2011-12-11 01:56 AM

The low birth rate just reinforces that there’s no light at the end of the tunnel for California RE shills.

The OC Register has another interesting link with some RE stats:

O.C. median home price slumps 6% (DataQuick)

Halfway there to national RE pricing! smile

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