« Back to story "Bankers and Lenders Oppose to Judges' Role in Heading Off Foreclosures"

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Posted by: jordan11 9 months, 3 weeks ago

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jordan119 months, 3 weeks ago

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Given the track record of the banks, I'd say they need close scrutiny. Whether or not a judge has the qualifications for this type of activity, I couldn't say. Not enough information about what their exact role would be.
I do know this; if judges are allowed to undervalue homes, it will affect ALL mortgage holders, and their equity.

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  Dionys9 months, 3 weeks ago
  
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  "I do know this; if judges are allowed to undervalue homes, it will affect ALL mortgage holders, and their equity."
  
  They wouldn't be undervaluing them. They'd be valuing them at market rate.
  
  Believe me, if all those homes go into foreclosure, your house value will plummet a LOT faster.
  
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    jordan119 months, 3 weeks ago
    
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    They wouldn't be undervaluing them. They'd be valuing them at market rate>>>>
    
    Which leads us back to their qualifications for deciding what 'market rate' is for any given area. If a particular area has high foreclosures, would a judge make future decisions based on that phenomenon alone, would he consider whether the foreclosures were due to job loss or too many sub prime mortgages....would he consider the values pre sub primes, and make adjustments for the years following....or would he just make his decision based on comps for a short period of sales figues.
    If a judge bases decisions on comps over a short period reflecting high foreclusure sales, home values will plummet anyway. His decision on the new mortgage amount would be on record, would it not? Buyers would consider that a comp, would they not?
    
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      Dionys9 months, 3 weeks ago
      
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      Let's just do a hypothetical.
      
      The people living in the house next to you are having a hard time making ends meet now that they've been fired from their manufacturing job and daycare facility. They bought the house for $225k.
      
      A. The house goes into foreclosure and the bank auctions it off. It sells for $100k (and that's being VERY generous considering the foreclosure sales I've seen lately). How does that affect your house value?
      
      B. The judge says it's worth 150k based on comps, market comparison and guesstimation. How does that affect your house value?
      
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