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

Story Comments

Posted by: Dionys 9 months, 3 weeks ago

This page is a permanent archive of the comment below and its replies.
To view this comment in the context of the full discussion for the story, use this link.

All Comments Share Story Report

100%
Dionys9 months, 3 weeks ago

This comment is below the standard viewing threshold View It »

"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.

(comment_max_expanded_depth : 55) (comment depth : 3) (recursion depth : 1) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
Reply
2 Replies

loading ...
- Neutral
  jordan119 months, 3 weeks ago
  
  This comment is below the standard viewing threshold View It »
  
  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?
  
  (comment_max_expanded_depth : 55) (comment depth : 4) (recursion depth : 2) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
  Reply
  1 Reply
  
  loading ...
  - Neutral
    Dionys9 months, 3 weeks ago
    
    This comment is below the standard viewing threshold View It »
    
    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?
    
    (comment_max_expanded_depth : 55) (comment depth : 5) (recursion depth : 3) (max_comment_reply_depth : 40) (comment_max_render_depth : 55)
    Reply
    0 Replies
    
    loading ...