I may be way off base here (please correct me if so) but, I'm wondering if these actions are actually ramifications of the screw ups as a result of the lost/destroyed notes and files shown in the 60 Minutes special. Also, knowing how lenders have screwed up, I have to be wondering as a citizen and a buyer:
- Are the lenders paying for this out profits?
- If not, who's picking up the costs for this?
- Is this healthy in the long run?
- Are these costs getting passed on to the regular banking consumer overall in additional fees?
Am I missing the point, mis-informed or just rocking the boat? Just a thought............and, these actions seems to have very, very little publicity. Someone, pleeeeease show me the light.
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I know I'm jumping in late to this conversation but, I think it's a combination of lost paperwork, faulty transfers of loans, MERS, and the size of the loans they are trying to "resolve".
My opinion is pay the "relocation money" and get the property sold / off the market. With more than 2 million properties that need to be moved through the system, quite frankly, I don't care what they do as long as they get inventory lowered and moving again. If they don't, we'll be suffering through this for another 5 years !
Cheers,
Thom Colby
Broker
Newport Beach CA
Jeff,
You and Harry have made some very strong points here. I agree with you regarding the lenders being the biggest part, however the amount to one seller seems to be too significant in my opinion. Spreading this dollars out over a larger population is best in my opinion.
It seems that the lenders have never really done their jobs correctly and are not doing it correctly now. I'm fully in agreement that short saling is the best solution, but someone needs to force the lenders to look at it realistically, instead of leeting them take the holy-than-thou attitude.
I'll go one step further and say that the next blame should go to these homeowners that supersized these home mortgages (with little income to back it up) as if they were driving through a McDonalds drive thru. I never understood that! This makes me wonder what are they teaching the lenders in business school as well? The economics do work!
So, my question of who's paying for this has not been answered yet, although in reality I know that it will be you and I. This is the 2nd or 3rd time in recent years where the lending institution industry has used flawed judgement. When is it going to stop? It seems like theres a fee for everything now, and with very little return. In the interim, we're caught in between.
Jeff said:
On the flip side if these lenders would just do their jobs, work with the sellers and not jerk them around, the sellers would be more likely to be more cooperative.
Harry said:
Every day i run into folks who are hopelessly upside down, yet are so bitter over the lack of cooperation from their lenders that they REFUSE to consider a short sale, & insist they will make the bank foreclose.
Many of these default situations drag out as much as 20 to 30 months in a stalemate.
These people are convinced they're getting revenge on the bank, & no amount of talk can persuade them that a negotiated settlement through a short sale would be better for all involved.
The average defaulted homeowner in Bakersfield would rather cut off their nose, & spite their face, than face reality.
I think that having an incentive is healthy, but that is alot of money for an incentive. I have to think that a seller would be happy with a much smaller number.
On the flip side if these lenders would just do their jobs, work with the sellers and not jerk them around, the sellers would be more likely to be more cooperative.
I am willing to guess that these lenders realized that by making things very difficult and ultimately forclosing, it cost them alot more money than this incentive money. Sellers get mad, stop maintaining the home, take all of the fixtures or damage the home and the bank has to pay to get it fixed in order to sell it, not to mention cash for keys and all of that non sense.
In my opinion, a few thousand is a drop in the bucket compared to the Billions of dollars of waste that we see at the corporate level of these banks.
Harry,
I thought I was having a bad dream and now I know it's real! It's so hard to understand this logic. My thought right now, if this is true is that someone, or some people should be getting issued orange jump suits and a cell. Lenders have historically passed cost on to the consumers. Nothing is free.
Then, where are the incentives for the buyers and good sellers? I just don't get it! We can't get back on our feet this way as a nation. Something seems very wrong here. There has to be a better way of finding out who owns what and who's upside down rather than giving away the farm. No offense, but this logic is like a one-legged man in a _ssk!cking contest...........no way he's going to win!