Opinions: What are the chances?

[BROKEDED]

As you may know Bank of American is the last of three servicers to halt foreclosures in at least 23 states which I believe are mainly Judicial states.

Well I happened to catch an article today that the NC State Att General is requesting the 15 largest servicers in NC (non-judicial) to halt foreclosures until they can verify to the AG that they've re-examined their practices and describe how they verify the supporting documents before they are submitted in a legal proceeding.

The letter was sent to the head of Metlife bank on October 5th and wants them to provide the info no later than October 12th...one week!

This would be good news for me. What do you think the chances are of this happening given the short notice to the bank?

[AngelinaCatHub]

It is my personal opinion that this is a political sham. As we all know by the news, we are out of a recession a year ago (only into the depression now). I think they have found that the vast amount of vacant houses are going to wrack and ruin, and politically the "masses" are getting pretty angry. Only my opinion, but I think you can stay a long time in the house before any writ of eviction comes your way. 'Hub

[tcreegan]

Hi all,

The news today said BOA had expanded the 'pause' in foreclosures to all 50 states, the other big lenders are falling in line..

This is fairly painless for the lenders, keeping a bunch of homes off the market is not going to hurt them, might even help.
They are just in a CYA mode, they weren't catching the errors internally and catching some heat externally.

Bottom line is a delay in your foreclosure which most likely is already delayed b/c there is a glut of homes on the market.

Tom in Colo

[BROKEDED]

The "stay a long time" part sounds great but I'm teetering on the edge as it is. We've been to the foreclosure hearing once and got it delayed 60 days by the Clerk of Courts to allow a modification to follow course. That delay is up in another week or so, with no real advance in the modification, and we'll have to attend another foreclosure meeting. At this next meeting we plan to ask that it be delayed again, by the Clerk, to let the modification continue but we could just as easily be denied at which point our only options are to request a halt in the foreclosure directly to the mortgage company OR file CH 7 by the sale date 20 days after the hearing. The request to halt the FC to the mortgage co. can't be done BEFORE seven days prior to the sale date according to them.

In the back of my mind, I was hoping that we could make it to the holidays and that Fannie Mae, the owner, would suspend all foreclosures again like they've done for the past two years. This deal with the Attorney General is something I could see dragging out for at least a couple months so I think it would be a better deal than any of the others combined.

I don't know that I fully agree with you about the politics behind it but something is definitely up. I think politicians are looking at a possible runaway locomotive if they don't do something or at least appear to do something fast. The repercussions of the fraud of this scale could seriously sink not only the US economy but plunge the whole world into an abyss. The domino effect this could create due to mortgages sliced and diced and turned into investment instruments is mind boggling. Take my house, divide it up a 1000 times into principle and interest pieces and then combine each of those pieces with pieces of 1000 more homes and then sell them bundled and then traded and split and bought and sold over and over. Just trying to clawback all the tax implications would be a logistical nightmare before you even got to all the lawsuits. And of course if the politicians step in and try to protect the banks again, it wouldn't surprise me to see blood running in the streets. The true crime will be when politicians try to wash this away quickly as if these are just isolated incidences.

A recent article I read cited a report from a U.S. risk-mitigation firm which “does extensive mortgage fraud research” and it concluded that 70% of U.S. homes currently in foreclosure involve (at least) one act of fraud. I think this is just a small window to view the type of widespread fraud in our ponzi financial system. The crooks have simply gotten complacent and lazy and now they've let the ball get away from them and it's rolling down hill fast.

[BROKEDED]

It appears that Metlife may follow suit, at least in NC, according to an article I found this morning. It also appeared that Wells Fargo has no intention of slowing down. Funny but they'll probably be the worst offender. This is quoted from the Charlotte Observer.

"Among the lenders, Wells Fargo has said its procedures are appropriate and that it doesn't plan to halt foreclosures. BB&T and HSBC also said their processes comply with the law. Citigroup said it doesn't believe a suspension is necessary because it has no reason to believe its employees haven't been following procedures. JPMorgan and Ally have said they are reviewing affidavits and will fix any problems.

SunTrust said it's reviewing the attorney general's letter, while MetLife said it intends to cooperate. OneWest declined comment. Others didn't respond or couldn't be reached.

The attorney general's move comes after Bank of America, Ally and JPMorgan Chase stopped some foreclosure-related actions in about half of the country after concerns that employees and outside lawyers signed documents without verifying information. JPMorgan's moratorium includes North Carolina."

[AngelinaCatHub]

If this were "normal" times, an occasional foreclosure is expected. However, with the vast amount of bk's (as evident by the increase right here, if you have been here a while) shows that we are next to collapse in Real Estate. Around our County there are literally thousands of houses vacant. My god-daughter purchases storage units for few bucks and low and behold, whole households as well as whole lives of pictures and paperwork abandoned. Why? Out of house, attempt to save stuff, then can't pay for storage, no other place to put it, lost.

Well it would behoove the banks to allow people to stay and protect these units. We are now having "squatters" occupying some of these, and believe me, they are not the best of the pack. Many houses have been stripped for metal and destroyed. The used furniture places have like new appliances most likely purchased from those who ripped off vacancies. It truly is a buyers market, but nobody has any money here in our county. 'Hub

[scorpion35]

so every homeowner that bought a home they could not afford will use this excuse to stop paying and live for free in the house
or the ones that are already in foreclosure that will also use it to stay and live mortgage free
remember u are in foreclosure because u stopped paying your mortgage not because the banks recently discovered foreclosure mistakes
meanwhile every homeowner that pays their mortgage on time is going to pay for all this foreclosure mess, NICE

[scorpion35]

so every homeowner that bought a home they could not afford will use this excuse to stop paying and live for free in the house
or the ones that are already in foreclosure that will also use it to stay and live mortgage free
remember u are in foreclosure because u stopped paying your mortgage not because the banks recently discovered foreclosure mistakes
meanwhile every homeowner that pays their mortgage on time is going to pay for all this foreclosure mess, NICE

[AngelinaCatHub]

so every homeowner that bought a home they could not afford will use this excuse to stop paying and live for free in the house
or the ones that are already in foreclosure that will also use it to stay and live mortgage free
remember u are in foreclosure because u stopped paying your mortgage not because the banks recently discovered foreclosure mistakes
meanwhile every homeowner that pays their mortgage on time is going to pay for all this foreclosure mess, NICE

You miss the point. I do not condone constructive bankruptcy. Those who are still employed, are paying towards future ownership. Those who are here, for the most part have lost jobs and wish to pay, but cannot. It is advantageous to all involved to protect the house, help a person who may be down and out, and keep vandals to a minimum. Eventually, if and when this economy picks up, those people living in their "own" house, but not paying for it, will either be allowed to pick up on the debt (they want your money, not your house) and recover, or the banks will eventually resell the house after the tolled foreclosure. It is a win, win, on both parties behalf.

Now Scorpion35, what brought YOU to bk? I sure did not imagine we would ever bk, with a credit score of a consistent 820 and 266 acres of prime waterfront property, and a quarter mil in the retirement. Well, it happened. We lucked out and now are broke but better off for the experience. It brought values into our lives much more important than "things". 'Hub

[scorpion35]

You miss the point. I do not condone constructive bankruptcy. Those who are still employed, are paying towards future ownership. Those who are here, for the most part have lost jobs and wish to pay, but cannot. It is advantageous to all involved to protect the house, help a person who may be down and out, and keep vandals to a minimum. Eventually, if and when this economy picks up, those people living in their "own" house, but not paying for it, will either be allowed to pick up on the debt (they want your money, not your house) and recover, or the banks will eventually resell the house after the tolled foreclosure. It is a win, win, on both parties behalf.

Now Scorpion35, what brought YOU to bk? I sure did not imagine we would ever bk, with a credit score of a consistent 820 and 266 acres of prime waterfront property, and a quarter mil in the retirement. Well, it happened. We lucked out and now are broke but better off for the experience. It brought values into our lives much more important than "things". 'Hub

i get your point.
i guess it makes sense and will actually help the real estate market by allowing people to stay in their homes so as long the banks make them pay when the economy recovers

[tobee43]

we can't lose sight of the reasoning behind the banks halting the foreclosures.

this will simply "delay" the foreclosures and certainly not eliminate the process.

hub worded it well...

If this were "normal" times, an occasional foreclosure is expected. However, with the vast amount of bk's (as evident by the increase right here, if you have been here a while) shows that we are next to collapse in Real Estate. Around our County there are literally thousands of houses vacant. My god-daughter purchases storage units for few bucks and low and behold, whole households as well as whole lives of pictures and paperwork abandoned. Why? Out of house, attempt to save stuff, then can't pay for storage, no other place to put it, lost.

Well it would behoove the banks to allow people to stay and protect these units. We are now having "squatters" occupying some of these, and believe me, they are not the best of the pack. Many houses have been stripped for metal and destroyed. The used furniture places have like new appliances most likely purchased from those who ripped off vacancies. It truly is a buyers market, but nobody has any money here in our county. 'Hub

the banks just don't know what to do now...besides paper work that is fraudulent you also are contending with these homes that are in such disarray...

they USE to say history repeats itself....well...we are certainly in chartered waters now! this will be most interesting to see how this plays out.

[AngelinaCatHub]

we can't lose sight of the reasoning behind the banks halting the foreclosures.

this will simply "delay" the foreclosures and certainly not eliminate the process.

hub worded it well...



the banks just don't know what to do now...besides paper work that is fraudulent you also are contending with these homes that are in such disarray...

they USE to say history repeats itself....well...we are certainly in chartered waters now! this will be most interesting to see how this plays out.

From the bit I picked up, it is not paper work purposely fraudulent, but sloppy due to the immense amount of work within this foreclosure thing. I heard in one instance an officer got as many as several hundred cases a month, did not read, and signed away. The mistakes not necessarily done to cheat or fool anyone, but just muddied the situation. Yes now they are slowing down as someone says, to CYA. A prudent thing to do. Also the costs of the procedure and upkeep of vacant property as well as the slow market is costing them more than just leaving things be until they can address the problem a bit slower. I don't think anyone believes they will just keep the house forever without paying for it. Those dumb enough to assume this are plain crooks and will get it later. Those who are attempting to recover may do this and I think the situation will come about that a second reorganization of the upside down mortgage will occur. After all, half of something is better than all of nothing. At this time the banks are going backwards in every mortgage loss. 'Hub

[tobee43]

From the bit I picked up, it is not paper work purposely fraudulent, but sloppy due to the immense amount of work within this foreclosure thing. I heard in one instance an officer got as many as several hundred cases a month, did not read, and signed away. The mistakes not necessarily done to cheat or fool anyone, but just muddied the situation. Yes now they are slowing down as someone says, to CYA. A prudent thing to do. Also the costs of the procedure and upkeep of vacant property as well as the slow market is costing them more than just leaving things be until they can address the problem a bit slower. I don't think anyone believes they will just keep the house forever without paying for it. Those dumb enough to assume this are plain crooks and will get it later. Those who are attempting to recover may do this and I think the situation will come about that a second reorganization of the upside down mortgage will occur. After all, half of something is better than all of nothing. At this time the banks are going backwards in every mortgage loss. 'Hub

i heard the same thing about the signing of the documents as well as, cnn was reporting that people were just hired to sit there and sign paperwork all day...LOL!!!

they showed one person's signature that was different on even the same mortgage, but varied from page to page!!! anyone could tell they were signed by different people. what a mess ...but like i said, the banks always get a way out. most likely they will take part of the stimulus monies to hire people to go through all these mortgages...and then they can say employment has increased...just look!!

now i understand why chase approached us AFTER our discharge and we surrendered and asked us if we wanted to go through a loan mod....???? in a vacate house that's been empty for 2 years and we live 1700 miles away...LOL...

then will get out of this one way or another. after all, it's not like people don't owe the amount on the mortgage it's just who is it that they owe???

[BROKEDED]

Hub, the deal with the "robosigners" with GMAC and BofA numbered in the THOUSANDS per month. One officer admitted to signing as many as 17000 a month and there were two more that testified to 7000 and 8000 EACH!

I have NO sympathy for the banks. They are so deeply imbedded with Washington and an age of corruption and sidestepping civic responsibility through the art of legalese that they leave anyone with less than masters degree in law, no choice but to do as they say once you've signed on the dotted line. I fully support those who are strategic defaulters. We're all going to pay for these economic screwups one way or another. This is by no way isolated to just the housing market. If you've looked at the Dow at all you can see that the market doesn't know which way is up. EVERYTHING right now is being propped up by government debt. No different than many on this board who looked like the epitome of success on the outside but up to their eyeballs in debt, robbing Peter to pay Paul.

Banks and politicians have led us all to the water. They didn't make us drink but they made the temptation too irresistible for most. I'm not innocent, by no means, but if I'm going to have to pay for this party for the next several decades then I'm at least going to leave with some cake and punch!

[BROKEDED]

Hahaaaa...Moody's Investor Services reported yesterday, Friday, that Metlife reported "several "irregularities" in its process of taking over foreclosed properties." Metlife Insurance which owns Metlife Bank and Metlife Home Loans apparently had employees robo-signing affidavits as well. They are supposedly delaying the sale of some already foreclosed homes in some states. I can't find mention of which states though. I suspect that if they don't stop the foreclosure process after this report that the Attorney's General will ask them to do it.

Surely, this is the rule and not the exception with any bank that has a big portfolio of mortgages right now. It wouldn't hurt my feelings one bit to see a 3-6 month moratorium. That may just be wishfull thinking though...who knows?