| Author |
Topic:
Mortgage modifications: Winning!....? [Locked] |
Hammerhand21  Title: That's what she said
Posts: 147
Registered: 2002-2-26 14:28:29
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
I guess I need to get some reading comprehension, move along nothing to see here.
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Hammerhand21 Title: That's what she said
Posts: 147
Registered: 2002-2-26 14:28:29
|
Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
I guess this is why I was kinda surprised when people were saying 275K was a Mc mansion. Living in this part of the country has skewed my view on what most of the country has. I get reminded every time I travel. We vacationed in Idaho a couple years ago, made me sick that I could buy a house on the lake were were staying at with 5 bedrooms, 1.5 acres and water access for like 400k...
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imaloon1  Posts: 674
Registered: 2003-9-15 07:19:53
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
paulg_68 posted:
IMHO posted:
the banks will make money off these people losing their house.
No they won't.
If banks made money off of people losing their houses there never would have been a bailout.
Banks get killed on foreclosures.
WRONG. They actually get paid the fully insured amount on the home via insurance, resell it in foreclosure and then make the money off of the resale. It's HUGE money and there was a great TED article about it at the height of all this crap.
You sir are way way way way way wrong... Normally you're just wrong but this is a bad one.
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Yukishiro1  Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
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That's because no one wants to live in idaho.
500k around here is cheap. Because everyone wants to live around here.
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SoBaKi  Posts: 487
Registered: 2002-2-26 09:31:13
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
Mastara posted:
Live there rent free until you have to leave. Stack some money and rent an apartment or house. After a couple years get another house. I knew a guy who was underwater like 100 grand. He filed bankruptcy and somehow or another managed to get the same house for cheaper lol. No clue how he did it but he did. Lucky dude.
Spoken like a true xian. God wanted me to remind you that you're an asshole.
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Abaddon_Ambrosius Title: Retired Theurgist TL
Posts: 1,674
Registered: 2001-12-21 09:51:39
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
Yukishiro1 posted:
That's because no one wants to live in idaho.
500k around here is cheap. Because everyone wants to live around here.
People paying > 10x the national median income on a mid-line house simply "because they want to right now" is no less stupid than people paying 10x the national median income "because they were sold a financial instrument that allows them to right now."
In fact... it's probably more stupid.
That's to be expected, though. I mean after all, you live there.
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Yukishiro1 Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
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Paying more to live in a better location is not a bad choice. If it was, the smartest people would live alone in the middle of the sudan where they could get a huge house and 10 acres of land for about 1000 bucks.
Good luck with that.
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imaloon1 Posts: 674
Registered: 2003-9-15 07:19:53
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
Yukishiro1 posted:
In a lot of states if you can come up with the missing cash they can't foreclose on you. Maybe not in an ass state like Idaho.
But something about the story makes no sense. Unless there is a really strange confluence of variables the bank is going to take a bath on the home in the current market. If your friend can come up with the missing payments and keep paying along the schedule otherwise there is no reason I can possibly think of that the bank would rather foreclose.
No Yuki, the banks are insured on the property for the full purchase price. They actually make twice the money on a foreclosure than they do on somebody paying the house off...
There is zero incentive for a bank to not foreclose on anybody. Especially now with that horseshit 25 billion dollar settlement.
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Yukishiro1 Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
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Szerek Posts: 338
Registered: 2000-8-8 09:26:09
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Date Posted:
1/1/00 12:01am
Subject:
Mortgage modifications: Winning!....? |
http://www.huffingtonpost.com/2009/10/21/perverse-incentives-lead_n_328378.html
http://news.consumerreports.org/money/2009/10/foreclosures-more-profitable-for-mortgage-servicers-hurt-homeowners-workout-loan-modification.html
http://www.trulia.com/blog/paul_andres/2009/03/foreclosure_or_shortsale
Trulia Article posted:
So what happens when the lender forecloses on a property where the borrower is unable to make the payments? The government may guarantee some of the loans, others through private mortgage insurance and the rest is sold to 3rd party and subsidiary investors at a loss offsetting profit, e.g., the lender forecloses on a home, the encumbrance is $300,000 market value is $225,000 in appearance the bank's net loss is $110,000; through short sale the lender has a loss of $75,000. So why foreclose at a greater loss? The following scenario shows the same situation through foreclosure:
($300,000) - encumbrance
($15,000) - approximate foreclosure cost
($315,000) - total encumbrance taken as loss
$225,000 - market value received from government/PMI or affiliate subsidiary investor
$205,000 - net proceeds from foreclosure REO sale
$425,000 - total proceeds
($315,000) - total encumbrance
$110,000 - net profit
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