Lenders Walking Away on Foreclosure Properties »
Posted By altnrg 7 months, 4 weeks ago in News
A rising number of mortgage banks are walking away on foreclosure properties as legal fees and repair and maintenance costs rise and as home values fall to low levels.
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not2needy7 months, 4 weeks ago
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That's what they get for giving loans to unqualified people, knowing that the property would end up in foreclosure... They didn't foresee it happening at such a magnitude though, they thought this was going ton work to their advantage, and it's turned around and bit them in the ass.. I say good enough for them. They should donate the homes to needy people rather than letting them sit and rot, but they won't. That's the trouble with the rich in this country, they don't believe in helping anyone.
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beavith17 months, 4 weeks ago
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what does this have to do with the rich?
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this is an example of a market so dysfunctional that its not able to clear itself.
what's shocking is that the note holders are walking away. the properties are so underwater that the note holders can't preserve any value.
rather than beyotch about rich people, this is a real opportunity for anyone to own real estate without having federal rules that require banks to loan to the unsuitable. for those that also successfully own in those neighborhoods, well, tough luck.-
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DarkWizard7 months, 4 weeks ago
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beavith1,
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"what does this have to do with the rich?"
I guess you think poor people are holding the notes for these homes? Please beavith1, do try and make the appearance of being unbiased.
"this is an example of a market so dysfunctional that its not able to clear itself."
I told you this months ago, but you kept harping on using the same mechanisms to get us out of this mess that got us in to this mess. This segues into your next comment...
"what's shocking is that the note holders are walking away. the properties are so underwater that the note holders can't preserve any value."
Remember what I said about...I don't know...5-6 months ago? It is a good BUSINESS decision to walk away from these properties as a homeowner and that the banks/lenders would have to write these bad debts off!
And yes beavith1, I distinctly remember having this conversation with you, and a few others, when you were blaming the homeowners and Fannie Mae for the housing collapse. You then went on about CDOs and CDS' too, but those are investor mechanisms and only come into play as tranches after loans have been made.
Banks/lenders shot themselves in the foot and are now making a BUSINESS decision to walk away from these bad deals THEY made. What's good for the goose is good for the gander and homeowners walking away from homes is a GOOD BUSINESS decision.
Most of these people will be better off dumping their debt back into the system and taking their chances on being a credit risk than holding on to a property that is 60k-80k-100k or more upside down! The banks know this yet are too slow to work deals that could keep people in these homes and let them both get something out of the deal! Ever hear of a win-win situation?! That's the opportunity!
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pokydoke7 months, 4 weeks ago
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I don't know how big an opportunity this really is. I'm sure the only reason these banks are walking away is because the property's are so distressed; it would cost more to repair them than their potential worth when fully functional.
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lloydm657 months, 3 weeks ago
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Not to needy.That's what got us to where we are now.Donating,and giving can be a good thing,or a bad thing.My friend worked for the largest retail company in the U S.Many people were surprised when he would mention their policy of destroying damaged products,instead of giving such products away.How long would it take for people to stop buying property,and just wait for another bust.
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