Foreclosures down 34% market is saturated

[skibum]

http://www.bloomberg.com/news/2011-05-12/foreclosure-filings-drop-to-40-month-low-as-u-s-lenders-delay-processing.html

[ryan]

Yes, I am hearing that as well. ...at least for new filings. Cases already filed keep moving forward.

[shark66]

And the best is yet to come...

Good luck to us all...

[StartinOver]

Doesn't seem to be stopping my bank from foreclosing. We filed our chap 7 on april 29, and they have already applied for relief of stay, hearing for that is 7 days after our 341. We are surrendering, but it would have been nice to see that activity delayed until we actually have time to downsize our stuff and find a place to live! We're thinking we'll downsize from a 3 bedroom house into a 1 bedroom apartment and save like it's coming back in style for about 3 solid years of monastic living. But I'm a bit of a packrat so that house is FULL... and I work in another state and live at my work 5 days a week. Gonna be a fun summer of providing the kind of moving sale that was always a magnet for me, only my stuff is mostly stuff I bought at yardsales and then upcycled or refinished, etc.

Our attorney says we probably have about 3 months in the house. Nice to be able to enjoy our backyard (which is a lake) for one last bittersweet summer.

[sh9730]

Startin over - not sure if it is too late...but you could buy yourself some time by applying for a loan mod? I am in CH7 (341 6/3/11) and I DO want to save the house if possible. My lender also quickly filed for a Motion for Relief, but once I applied for the loan mod, they WITHDREW that motion! So, although Im hoping to stay in my place (and indicated as such in my filing), even if we DONT come to a modification agreement I at least get a couple more months in the house while they review the loan mod.

Also, from what I understand its pretty standard fare for them to file the motion right away. They want to keep their options open. But, just because they get the stay lifted, and then they CAN proceed with official foreclosure proceedings, it does not mean they WILL right away. Remember they still have to serve you with an OFFICIAL Notice of Default (not just the scare letters they send) and file it with the county etc. and they cannot do that until AFTER they get the stay lifted. Then in most states its at least 90 days from the day they file that official NOD....and this is all if they serve you with NOD immediately after they get the stay lifted, which is unlikely. My guess you have more like 6 months...depending on where you live.

And again, if you appy for a modification they stop all the foreclosure proceedings while they review your application.

Just a thought.

[StartinOver]

We have applied 3 times. The last time they offered a mod, but it was not enough given the rest of the mess we are in, so we've decided a chapter 7 with surrender is our only option at this point.

Also, we are not in a judicial state, so they won't have to take quite as long as a judicial foreclosure. It's power of sale in the mortgage that governs it.

[overspent]

Foreclosure down partly is due to paperwork issues. Banks are now being challenged more by homeowners in terms of standing issues. In my case, they could not show me the note. The copy they keep sending contains no assignment. The originator is defunct, the purportly asiigned trust is bogus. It's going be tough to go infront of a judege and proof standing. However, you must fight, can not let them take what's not theirs.

[skibum]

Start: Our attorney told us we would be evicted in January, so we left our house in the mountains and moved to the city. Here it is mid-may and no NOD yet. Overspent: that's interesting about the assignment. Is there a particular form or document that was missing? I am curious because our loan went from WAMU to Chase, but I don't recall seeing an assignment either. Maybe I should ask for one?

[lookinupn09]

Overspent,
I am in the same situation. The lawyers for the bank had served me, I answered on standing same reason, with a counterclaim, and they have backed off. Oct. will be 3 yrs. This is going to get interesting, agree?

[CCC]

The foreclosure filing slow down could just mean that the banks are overwhelmed and way behind; which is good for homeowners because it will give them time to get back on track or make a short sale.

[HHM]

In the short run, good for homeowners facing foreclosure, buys a little more time; in the long run, bad for real estate values and recovery. All it means is the back log is stacking up and could see record foreclosure for years to come.

Keep in mind, most of the foreclosure irregularity issues have been resolved and settlements are ongoing with the various Attorney General offices, so that issue is mostly moot. But, in order to comply, it just means foreclosure is going to take longer.

[Toby629]

Our BK was closed in March and we are giving up the house. Bank also did their relief from stay when we filed BK. We have not heard anything yet about the foreclosure, so we are just staying put until we have to move. Hope we can get a couple of months yet, have been looking for house rentals in our area.

[lookinupn09]

In the short run, good for homeowners facing foreclosure, buys a little more time; in the long run, bad for real estate values and recovery. All it means is the back log is stacking up and could see record foreclosure for years to come.

Keep in mind, most of the foreclosure irregularity issues have been resolved and settlements are ongoing with the various Attorney General offices, so that issue is mostly moot. But, in order to comply, it just means foreclosure is going to take longer.

Like overspent stated, the original lender is defunct, and the paperwork, ie: robosigned paper, has damaged title, along with making standing almost impossible. My opinion is that since Judges have started to make attorneys prove their paperwork is right going into the proceedings, we may see another really big problem for the real estate market.

Just a thought. Again, IMHO, the banks are culpable because if any reasonable person looked at the mortgage application, then asked the applicant, 'do you see a way for you to pay for the 20% increase in payment in 2 years?' they would not have written 90% of those mortgages. So for the profit they all gained by fabricating this mess, they should be on the hook for this. I really appreciate your comments, and have learned from them since joining this forum!

[HHM]

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Like overspent stated, the original lender is defunct, and the paperwork, ie: robosigned paper, has damaged title, along with making standing almost impossible. My opinion is that since Judges have started to make attorneys prove their paperwork is right going into the proceedings, we may see another really big problem for the real estate market.

Just a thought. Again, IMHO, the banks are culpable because if any reasonable person looked at the mortgage application, then asked the applicant, 'do you see a way for you to pay for the 20% increase in payment in 2 years?' they would not have written 90% of those mortgages. So for the profit they all gained by fabricating this mess, they should be on the hook for this. I really appreciate your comments, and have learned from them since joining this forum!

Yes and no. Understand, all the settlements with the State's AG offices are going to allow foreclosures to proceed notwithstanding paperwork issues. Here is the thing, at some point, the homeowner stopped making the mortgage payment, that means "someone" has the right to foreclose. So at the end of the day, the foreclosures WILL happen. Judges are starting to go the other way on this issue, recently out of CA, a case was decided in favor of the homeowner, but the homeowner DID NOT get the house back. Substantive facts will always trump technicalities. Standing is a technicality in this issue, the homeowner is still in default of their mortgage. I am not saying that the banks did nothing wrong, but the end game scenario is NOT going to be a millions of people (or even hundreds of people) getting a free house.

[skibum]

HHM, what do you think the end game will be? It would be nice if the end was in sight, but I can't see it. I can only imagine, and its uglier than anything I could conjure up until now.

I think we need a middle ground to work through this, there is no fan big enough to catch it all. This is a multi-generational problem and it will effect our children and their children. It's the biggest screw up in history.