01-17-2009, 10:05 PM
O.k. Lets get this straight BANKS/BANKERS are the ones RESPONSIBLE for where they lend their money. End of the blame game.
I went to a banker they did everything they could to get me to qualify for this "median home price" which was way more than I thought I could afford or even wanted to pay. They did things like; not including taxes or insurance in the payment, counting my IRA as income, I'm sure there was more. Consumers are known to be dumb. So if a Banker tells you thats what you can afford and thats what they are gonna give you, you think its true. I ended up buying a house for 100k less then the lender would of loaned me and I'm still in trouble. It all just costs way more then you think it will. Like termite treatment to protect the banks investment when all they care about is hurricane insurance, I'm still crying over that one. Banks cheated the consumers and there investors and now the taxpayers. THEY started all this mess, thats now hurting just about everybody!
On top of all that, they would prefer that you short sell or foreclose your home for a fraction of what you paid for it, instead of modifying the principal! Why? I have no idea. But as tax payers we should demand they modify the principle. 1.They are gonna take the loss anyway. 2. It would stabilize the market. 3. They would probably come out of it with more money then if they shorted it or foreclosed and it would be less of a burden on taxpayers, we are talking somewhere in the 25 trillion dollar range of losses if they don't! End of rant!
Heres the word on the local street Radioguy;
Its taking banks about a year or more to foreclose, 3 to 6 months to modify. Do not fall for a modification that does not reduce the principal! Many of the earlier modifications that were done had added FEES and missed payments that INCREASED your principle @ 10% and also added years to the loan.(see I told you they were jerks).
Most will not even talk to you unless your 3 months behind. Some want you to show income that you can afford it and some want to see that you can't afford it.
You must contact the loss mitigation departments, not customer service you also must fax them letters repeatedly requesting a modification it may take awhile for them to contact you about it, You have to call and make sure they received your fax and opened a file. Then you just wait and save the money, you will probably have to make a triple payment to show good faith when the mod comes through. Basically if your not late on payments and having a hardship like your work hours were cut,inflation etc they are not going to help you, yet anyway.
So whether to walk or not? We'll I'd expect prices to fall another 25% or more if things continue the way they have. 75% drop is what happened here in Puna when the Japanese economy tanked in the 90's now the GLOBAL economy has tanked. There were lots of foreclosures stripped to the bones and the banks could not give them away.
Word is if you got cash you can get a home for 50.00 a square foot, So thats about what the real worth is right now, also a big builder of speck homes is about to be foreclosed on, so expect about 60 to 100 homes to flood the puna market fo cheap. Some people are finding that they can get a much better place for cheaper and are working out private deals with desperate sellers or renting, before they miss payments and there credit is trashed. There is also short selling to preserve your credit and HUD has a program with lots of strings if your really desperate, and bankruptcy may help with a modification.
If your credit is trashed already you may as well live in the home payment free for a year or so and save the money, you'll also have time to decide if you want to keep it or see if any new programs come up, or the banks decide to wise up and stop being so dam greedy and modify the principal.
I seriously doubt that prices come back to the mania they were any time soon, you'll have to do the math and see if it makes sense for you. Defiantly call one of the consumer credit hotlines they have good advice sometimes and see a lawyer if you can afford it, Most of all be informed. I really hate saying all this as it just compounds the problem, but really what fool is gonna keep there home when it lost 75% or more value and you can live better fo cheaper someplace else, talk about a money pit. DO NOT feel bad! its not your fault, its all our fault, and you have to do what you have to do to protect and preserve your family and your future in this economic crisis.
If your an investor its another story but I think it may be possible to modify.
I went to a banker they did everything they could to get me to qualify for this "median home price" which was way more than I thought I could afford or even wanted to pay. They did things like; not including taxes or insurance in the payment, counting my IRA as income, I'm sure there was more. Consumers are known to be dumb. So if a Banker tells you thats what you can afford and thats what they are gonna give you, you think its true. I ended up buying a house for 100k less then the lender would of loaned me and I'm still in trouble. It all just costs way more then you think it will. Like termite treatment to protect the banks investment when all they care about is hurricane insurance, I'm still crying over that one. Banks cheated the consumers and there investors and now the taxpayers. THEY started all this mess, thats now hurting just about everybody!
On top of all that, they would prefer that you short sell or foreclose your home for a fraction of what you paid for it, instead of modifying the principal! Why? I have no idea. But as tax payers we should demand they modify the principle. 1.They are gonna take the loss anyway. 2. It would stabilize the market. 3. They would probably come out of it with more money then if they shorted it or foreclosed and it would be less of a burden on taxpayers, we are talking somewhere in the 25 trillion dollar range of losses if they don't! End of rant!
Heres the word on the local street Radioguy;
Its taking banks about a year or more to foreclose, 3 to 6 months to modify. Do not fall for a modification that does not reduce the principal! Many of the earlier modifications that were done had added FEES and missed payments that INCREASED your principle @ 10% and also added years to the loan.(see I told you they were jerks).
Most will not even talk to you unless your 3 months behind. Some want you to show income that you can afford it and some want to see that you can't afford it.
You must contact the loss mitigation departments, not customer service you also must fax them letters repeatedly requesting a modification it may take awhile for them to contact you about it, You have to call and make sure they received your fax and opened a file. Then you just wait and save the money, you will probably have to make a triple payment to show good faith when the mod comes through. Basically if your not late on payments and having a hardship like your work hours were cut,inflation etc they are not going to help you, yet anyway.
So whether to walk or not? We'll I'd expect prices to fall another 25% or more if things continue the way they have. 75% drop is what happened here in Puna when the Japanese economy tanked in the 90's now the GLOBAL economy has tanked. There were lots of foreclosures stripped to the bones and the banks could not give them away.
Word is if you got cash you can get a home for 50.00 a square foot, So thats about what the real worth is right now, also a big builder of speck homes is about to be foreclosed on, so expect about 60 to 100 homes to flood the puna market fo cheap. Some people are finding that they can get a much better place for cheaper and are working out private deals with desperate sellers or renting, before they miss payments and there credit is trashed. There is also short selling to preserve your credit and HUD has a program with lots of strings if your really desperate, and bankruptcy may help with a modification.
If your credit is trashed already you may as well live in the home payment free for a year or so and save the money, you'll also have time to decide if you want to keep it or see if any new programs come up, or the banks decide to wise up and stop being so dam greedy and modify the principal.
I seriously doubt that prices come back to the mania they were any time soon, you'll have to do the math and see if it makes sense for you. Defiantly call one of the consumer credit hotlines they have good advice sometimes and see a lawyer if you can afford it, Most of all be informed. I really hate saying all this as it just compounds the problem, but really what fool is gonna keep there home when it lost 75% or more value and you can live better fo cheaper someplace else, talk about a money pit. DO NOT feel bad! its not your fault, its all our fault, and you have to do what you have to do to protect and preserve your family and your future in this economic crisis.
If your an investor its another story but I think it may be possible to modify.