Comments on: This will prevent foreclosures how?

By: Coffee

Coffee — Tue, 17 Feb 2009 00:57:07 +0000

On Wednesday it looks like oBama will to to Phoenix to announce a Government 50% sharing arrangement that will have taxpayers subsidizing monthly payments based on current income and based on collateral values(Current home values)

How crazy is this. Many of these buyers used no verification loans because they did not have verifiable Income!!! Now we plan to use W2 or verified income to adjust a payment. Many will show 70 to 100 Debt to income ratios! But reality is many have un reported income.

To use verifiable income to re adjust a loan that was created without verified income is crazy as it gets.

I am still waiting for my government help for my Intel stock I purchased at 75$?

By: twist

twist — Mon, 16 Feb 2009 06:36:35 +0000

Coffee-

Thanks as always for your updates. I’ve been wondering just how common this is.

I’ve wondered for awhile now why anyone would speak to the MOD guys. I also wonder how many folks are instead maybe paying a couple of payments to a buddy or family member thinking, “This way I can get behind and try and work with the banks. If the scheme doesn’t work, I can always get the money back from my buddy and make the loan whole. Avoiding making mortgage payments is getting to be a national sport.

Are legislators listening? Probably not until they start getting burned in the MOD scams themselves.

By: Coffee

Coffee — Sun, 15 Feb 2009 23:52:06 +0000

ON TOPIC: I have spoken to many borrowers and they are purposely defering payment for the hope of principle forgiveness. MODS are the problem. So many un regulated Modification companies persuading borowers to pay thier two payments to the MODS and use this default to force a reset. The client can well afford the mortgage but paying two months to the MODS will hopelessly place them behind, and never able to keep up.

The MODS are crating 20% of the defaults in Phoenix. The MODS are taking 2,800 ~ 3,500 fees upfront with the false hope of principle and payment reductions.

I am disgusted with the MODS, they are the new subprime hope mongers taking the money upfront. Many are lawyers, many are just ambulance chasers. 20% creating a vicious cycle of defaults.

3,500 in cash will force many to never be able to catch up when the realize these MODS are 99% scams and dream dealers.

The pitch is that is your are not in default, banks will not speak to you. Give us your nect two payments and we will MOD, Modify your loan and lower your payment, lwoer your debt. AGHHH! Are legistlators listening?

By: John M.

John M. — Sun, 15 Feb 2009 17:45:06 +0000

Waaaay off topic, but who can resist Barenaked Banksters?

We all had positions, we each had a role
We'd over-rehearsed it; we had full control
They can't teach you acting it's there in your soul
It's the same with a bank job and each thing we stole

By: Hutch

Hutch — Sun, 15 Feb 2009 17:29:07 +0000

So of course the big banks have announced they will participate in a voluntary foreclosure moratorium. Meanwhile back at the ranch, the ‘bedrock’ of today’s housing equity, Charlotte N.C., gets a reality check.

http://biz.yahoo.com/ap/090214/na_us_charlotte_banks.html?.v=1
Igor says: pathetic

By: twist

twist — Sun, 15 Feb 2009 13:45:44 +0000

Off-topic, but I thought this comment was pretty funny:

Treasury Secretary Timothy F. Geithner laid out the Obama administration's financial rescue program for his international counterparts Saturday in an effort to rally a vigorous global response to the worsening crisis and reassured the world's leading economies that the U.S. plan is more developed than the outline he unveiled publicly last week, officials said.

I feel like I do when I'm watching movie trailers and they are just awful. My thought always is, "If these are the highlights, the movie must really stink."

I wonder if the G7 leaders are thinking the same thing.

Igor says "clueless", and so do I.