This page has been archived and commenting is disabled.
Repeat Foreclosures Triple Since Crisis
As delinquencies rise to worrisome levels in the now $1 trillion market for auto loans and as the two biggest players in the consumer loan space prepare to merge into a multi-billion dollar ABS machine, January data on foreclosures suggests there may be trouble in the real estate world as well.
According to Black Knight Financial, both new and repeat foreclosures hit a 12-month high during the first month of the year with repeats (i.e. the borrower was rescued but has since entered the foreclosure process again) jumping 11% M/M. More troubling is the trend in repeat foreclosures which accounted for only 15% of total foreclosures during the crisis but now make up a startling 51%.
Trouble in HAMP-land anyone?
»
- 12504 reads
- Printer-friendly version
- Send to friend
- advertisements -
So many Sears Towers to buy... So little time...
It's indicative of too many house flippers speculating on prices and yes also indicaative of aa top. Now watch this drive
Psst...the big, dirty, dark secret is this:
It is 2015.
That means everyone who defaulted on credit cards and homes in 2004-2005 are now eligible to file bankruptcy AGAIN. If you think it is bad now just wait for 2016, 2017, and the big one, 2018.....
Sorry - since a BK doesn't solve a mortgage arrearage - the bank forecloses by having the mortgage debt removed to State Court and continues the foreclosure - your observation doesn't seem to fit. ?? Very interesting take on other debts though.
I think BKs can be filed after 7 years - which actually fits your timeline better
1. The Joe Biden Jr. Citigroup Bankruptcy law of 2005 does change it to 10 years effective 2005.
2. Mortgage arrears can be wiped outin a chapter 7. The foreclosure continues but then the bank is foreclosing on itself since the paper and home becomes bank property in 99% of BK's anyways.
3. The above depends on your state. In Florida it wipes it out or if you file for reorganization and wish to keep the home it is protected from other creditors except for the Federal Government, aka IRS. The Homestead Exdemption in Florida is why every bankster has a home here so if they have to file for BK, their personal property or home is shielded except again, from the IRS in a BK.
I remember reading on foreclosures in FLA - robo signing, who owns the debt etc - It sounds like FLA became a whole different legal place - some of it good from memory
HAMP was a joke and was never going to work. The TBTF banks had to create a foreclosure 'process' becasue they spposedly had to many foreclosures to review for workouts and the cost supposedly would have been way to high to do individual reviews for workouts. Plus they screamed moral hazard (to which I say fuck them -they started it and the taxpayer is paying for their fucking mess) when the real moral hazard still exists in those TBTF banks as their behavior has not changed because no one was punished for misdeeds. Anyway, let me give you a real life example of how fucked up the situation was and how they thre common sense out the window and left either investors or taxpayers holding the bag.
Here's a true story from asource who will remain anonymous, but whom I know very well. Mr. Homeowner, a very successful real estate broker and investor, got hammered in 2007/2008 and his real estate business collapsed. As a result he contacted the bank servicing the note on his home to let them know that his assets were dwindling quickly and he had lost 75% of his net worth as a result of the meltdown. Even worse was that the market was basically dead leaving him with little prospect of making any real money. He saw the writing on the wall, and sold off all his properties except for his home before the market hit bottom. He paid off all loans in full and when he was done he had cash in hand that was approcimately 70% of his mortgag amount. He did an evalutaion on his home and found it was worth at that time, basically the same amount as all the money he had. He offered to do a workout with the bank and pay them everything he had and they turned him down, saying they would rather take a $200k loss than do a workout with him becasue of the moral hazard. The bank would hve had no additional carrying costs, it would not have been reuqired to pay a real estate commission on the sale, and it would not have had to spend money to maintain the property while it went through the foreclosure process. He told them he knew the market and they would not do better than his offer. In the end, they they did not take his offer. They carrying costs on the property during the foreclosure process were $60k at the loan interest rate. They spend $50k on foreclosure costs and $44k on real estate commisions to sell the property...and in the end they sold the property for less than Mr. Homeowner offered them. They turned a $300k loss into a $550k loss. How many other foreclosures had similar stories? After totally fucking up the economy how much more did the TBTF banks fuck over the economy to make a profit on foreclosures? It's totally unbelieveble to me that our government lets these guys contiually cause problems and fuck people over by passing off the costs of the mess they made and all without any accountability or jailtime. We're going to get fucked again, guaranteed...
yes that would be a loss in a normal world by an idiot bank. but i'm sure in all these laws passed to save their ass they actually MADE money and lots of it before, during and after the foreclosure process.
"moral hazard" had no part of the banks decision - if they refinanced in any form they had exposure if they originally sold the CDO's and made reps to the buyer and then retained service on the mortgage
so from a liability perspective they decided to do nothing and all the losses were for the account of the owner of the mortgage and they made money on the service and any other actions taken on the processing of the foreclosure - so the service agent won and the holder of the mortgage lost
what is the issue? stop looking at the economics of the decision that doesnt drive the outcome
!. It is not true. It's 8 years from filing a Chapter 7 with discharge to filing a second to get another discharge. It's 4 years for 7 then 13 and 6 years 13 then 7. No need to junk, that's what it is.
Go read the Joe Biden Jr. Citigroup sponsored bankruptcy reform act of 2005. Trust me. It's 10 years. You're living in the "olden days" as everything has changed.
You can file a chapter 7 every 8 years, and a chapter 13 every two years. If you have a good lawyer, you can delay the big F for 2-3 years, minimum.
You can actually file bankruptcy every year, or even more, it's just that your debts can only be wiped every 8 years, and a repayment plan every 2 years. You cannot walk from the mortgage interest debt, but you can get rid of the other, unsecured debt, so that you have money for your home.
fyi
Obama goin' pay muh mortgage and buy me a sail fone.
That name is the most horrible curse word used on this site, ever.
Twice foreclosed on? THree times a charm.
You can ramp up the market, but they haven't found a way to ramp up reality.
Amateurs. Dallas' housing started to crash in 1986. It didn't hit bottom until most properties had been forclosed on twice, which was around 1993. Sounds about right.
To hamp and to fold till foreclosure do us part.
So the problem of not having money never went away?
Greece is the word..............................
pods
So they learned the lesson. Wall St style. Rinse repeat.
Mortgage JUBILEE is needed at once !!!
The banksters must repay all of us back.
it will happen one way or another, god doesn't like being fucked with.
If only they had an Apple Watch to remind them to pay their mortgages.
Hang on, how can this be true? We have an honest 5.5% unemployment rate. Anyone who wants a job can get one, Obozo said so, and he don't lie!
NBCBS sez it's all awesome!
So why the hell aren't these deadbeats paying their debt? They should get a another job, or two.
One to pay for health care, one to pay for my cell phone contract, one to pay for food... oops.. gonna need a fourth to pay the mortgage. Luckily there are 24 hours in a day.
They learn fast how to game the system dont they
'tis true ... my idiot sister-in-law is about to make the repeat offender list for the 3rd time.
Looks like it has a long way to go.
Meh...
Once again, liquidity doesn't change insolvency.
Hard to believe the people that were irresponsible with their finances are still irresponsible. Go ahead, give them just one more chance...
By "people" I am hoping you mean the banksters. If not, you are idiot bank stooge.
My 5 part time jobs were not enough to pay my $1,687 mortgage.
Yo dude....You still got room for an 8 yr. car loan
HAMP modifications were often 2% for five years then increasing to 3% in year 6. That may explain part of the rise, i.e. the 2010 modifications.
Individual bank mods are the same, temporary. As jacked as this market is being shown to be, the band aides start to come off now 5 years past.
Home prices need to come down big time in SoCal. I will believe its real when the homes in SoCal lose 30-50% of their current value. Otherwise it is bogus.
Agree 100%! SoCal up on Chinese cash, Canadian, Latin Am, NOT sustainable w/ median wages/prices at alltime high and wages going nowhere. OVER-PRICED! Plus PE "investors" need to bail soon or give it up (the ones that didn't/can't IPO or sell to REITs)
Black Knight, formally Lender Processing Systems. Remember "Linda Green" and 60 minutes? LPS renames themselves Black Knight as the are serving evil or greed, take your pick. LPS and our DOJ admit that LPS filed over one million forged, fraudulent documents into our public land records. LPS settles with DOJ and 49 State's Attorneys General. They, LPS/Black Knight did an audit in NM to "remediate" the bad records. But...they found NONE in the whole state of NM! What are the odds? Naturally our AG office in NM is not answering how this could be. I had to request the records of the audit. What a farce!
So...Black Knight? Fuck you and your criminal enterprise. Oh, still have my house you fucktards and haven't made a payment in four years. Did I mention fuck you? Yes, I am juvenile. AND a deadbeat.
Link to Consent order.....
http://www.federalreserve.gov/newsevents/press/enforcement/enf20110413a1...
If you read this it is pretty amazing. Well, no, we know the courts are owned. Consent Order is window dressing. Just change your ownership and change your name and keep on producing forgeries and fraud. Playbook!
Damn! I'm still on my first foreclosure (the one on the property I inherited from my father). Five years, seven months and 20 days.
Thought I had a cash for keys deal with the bank. Had all the papers, etc. negotiated, verbally agreed, two months have passed and the word from the bank's attorney? Crickets.
Oh, well, guess I'll just have to proceed with that fraud suit I brought nearly two years ago.
BanKKKiller, bear in mind, that consent order is only good until October 4, 2015. The banks are playing for time on whatever messes they haven't cleaned up already, I'm certain. Make sure to do timely filings, if need be. Alternatively, save your dough, don't do any repairs and make your move when SHTF.
Per the consent order, I am including it in my pleadings as evidence of a continuing fraud.
I love you just the way you are! Don't go changing . . .
Moar zero-down subprime loans...moar free stuff.
it's only Fair.
Repeat foreclosures? How the hell do you get a mortgage after you've already been foreclosed on?
Who would give these fucks another chance to blow up the taxpayer? I demand criminal suits against every single policy writer at evey bank who allows this - or doesn't require checks -, and against FICO if they didn't dink the score of foreclosurees for the next 50 years.
While predictable, those gold losses did hurt today, excuse my rant