Irvine Housing Blog

Enjoy the vacation!

I don’t think the bank will let them consume all their equity, but a large percentage.  The borrower is playing chicken though.  If the bank has given them that much time, the bank could foreclose and book a profit if the market price is really $650k.  For short-term issues, I’d like to see banks not foreclose on those with equity; however, 27 months is not a short-term issue.

The double dip will only happen in areas where it is still more expensive to buy than rent.  In my area of NC, you still end up saving a fair amount by buying.  It’s also a region of the country without a huge amount of in/out migration, so I would imagine buyers are thinking longer term.  I contrast that to where I grew up in FL where there was significant mostly in-migration, with out-migration happening when people head to college.

I’m not sure I understand the squatting for 27 months.  Each time there is a recission or another NOD means that they made some kind of payment or arrangement to restart the foreclosure clock. 

To my knowledge the only way you go from Trustee Sale to recission is by becoming current and then you miss two payments and the whole process restarts.

Can anybody shed any light on this?

You can get a newbie agent to list you home as a short sale.

The trick is to overprice the short sale and be uncooperative with legitimately priced offers and you are good as gold with the lender. They don’t think it is overpriced (if you have seen the banks appraisal on short sales, you know what I’m talking about)

So keep the yard looking decent and keep it listed, and you are good for a very long time. The NOD will stick, but they won’t go for a NOS.

Yes, it is another scam, but it works and is why I want to abolish short sales.

IrvineRenter et al.,
For the second who’s not being paid, do they need to file a NOD to keep their claim alive and avoid the statute of limitations on the debt?

For the squatters who haven’t paid in 2 or more years, is the second lossing their claim or how do they kept their interest alive?  e.g., file suit without claiming the house.

Jobless Recession = Another round for the banksters on the backs of the taxpayers.

I’ve heard that on many short sales the seller who must first approve offers (bank has ultimate approval of course) are also throwing in other “conditions to accept” like “you agree to help me by making a contribution to my 2nd mortgage or HELOC” etc. - Asking buyers to help dig them out of their problems.

I guess it could be acceptable under the right conditions, but I’ve notice short sales in my area very attractively priced initially (baited), but when you peel the onion and discuss with the seller’s agent the seller is expecting the buyer to not only take on an as-is purchase and the ridiculously long SS process, but also help them with closing costs and paying off chunks of the 2nd mortgage.  I don’t know how common or even legal this is. Seems to happen more with sellers that have declared bankruptcy.

The response by buyers right now (sans meaningful tax credits) is, “I’m waiting. Maybe we’ll talk after the foreclosure”.

IR, have a nice vacation.

Remember all the astute observers here at IHB claiming that the only reason consumer spending is still relatively strong is because people aren’t paying their mortgages? It looks like there’s some merit to that claim.

In addition to being easy on the eyes Meredith Whitney is among the few ‘big time’ analysts to call the administration’s efforts at artificially supporting the market place for what it actually is.  Short term and not effective.

Get ready for another dip.

It will be interesting to see if there is any pick-up in sales in the next month or so.  Interest rates are at the lowest they’ve been since 1971!  That was before the big inflation surge of 1973-1974,  If interest rates this low do not kick start the market, nothing will! This is what I don’t understand - the Fed is out of bullets to jump start the economy.  You can’t go lower on interest rates…

Is there any doubt in anybody’s mind (rely on your instincts) that we are not going to have a second significant drop in housing prices?

Has Ben Bernanke run out of out of bullets?  If not he will stop the double dip with another trillion dollar MBS.  He’s not worried about re-election.

Wouldn’t it be interesting if these “squatters” had rented the house out and had collected $70K+ in income during the foreclosure process?

Not exactly. I think that this particular situation is a lot more complicated.

I know someone who moved back home with mother and is renting out his house and not paying the mortgage.

Yes, that can happen in this environment. Isn’t it fraudulent to collect rent and not pay the mtg? If it isn’t, then it’s easy money for a lot of people, since the banks can’t be landlords.

smileys

Most likely triple dip.