I sort of gave my son the advice to walk away from his house, a couple of years ago, even though it's probably not what I would do in the same circumstance.
Indeed, when I owed the credit cards a fortune, I fought through to pay back though it didn't make much sense at the time.
Toby was too proud, and too stubborn to take my advice, and is currently in negotiations to 'short sell' his house.
Anyway, with all the recent news about foreclosures being in dispute, it might be a good argument for hanging in there. Because the guys trying to take over your house may be bogus.
These SOB's may not have the goods. They may not be able to Prove Their Legal ownership.
If enough people challenge these bastards in court -- "Prove to me that I'm actually supposed to pay you," maybe they'll will start being a bit more accommodating about adjusting the loans.
What a mess. And more proof that we Americans aren't so damn efficient after all. (As if we needed more proof after New Orleans and Iraq -- not to mention the potholed roads and broken down bridges....)
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About Me
- Duncan McGeary
- I'm Duncan McGeary, owner and/or operator for the last 39 years of Pegasus Books in Downtown Bend, Oregon. These days I'm writing books as well as selling them. I'm the comic book guy. But even more so, I'm a book book guy. Books of all kinds. Big books and little books, children's and adult, fiction and non-fiction, hardback and paperback and trade paperback and graphic novels. Books with more words than pictures and books with more pictures than words. They are all part of the book world to me, and I love being surrounded by them every day.
7 comments:
So your view is that it is ok to borrow money and then not pay it back because of a technicality? That surely creates an environment that will encourage people to make loans in the future.
The companies did a poor job on tracking paper work. An area that certainly needs to be cleaned up. However, the problem with the paperwork is just going to make thing that much more confused, apply more downward pressure on the housing market and extend the issues even further. After all a number of buyers that might have been willing to buy are now going to stay away over concern about titles. Title insurance will go up. Loan costs will go up.
Intuitively, the harder it is to arrive at a loan modification or a short sale, the more likely it is that the bank is screwed up by paperwork therefore more likely to be a good target for legal disputes.
If a bank does not have sufficient paprwork to foreclose then it also does not have sufficient paperwork to approve a short sale. Of course if they approve the short sale it is unlikely that someone will challenge.
Bottom line: more delays, the problems will stretch out even further, people will remain tied to their houses and will not relocate to other places with less unemployment.
On the banking side: higher costs, fewer people will to buy paper (only the government at this point) fewer home loans being made.
On the buyer side: More concern if you have a valid title, higher title insurance costs, more potential for failure of title insurance companies leaving those with insurance unprotected. End result some buyers dropping out of the market.
RDC, very valid points.
On the other side, NYT story states affidavits from a Wells Fargo exec signing 50 to 150 foreclosure affidavits a day. Not much time for reading them.
In another case, "...Ms. Thomas’s signatures differ so wildly that it appears that three people signed the documents using Ms. Thomas’s name."
http://tinyurl.com/34cbb62
How much did they make writing these loans, after being bailed out for such sloppy work?
Biwert,
Now which bailout are you referring to?
Now at this point most of the major banks have paid back their TARP funds. Actually the Government has made a profit on the bank portion of TARP. Most of the remainder outstanding is Insurance (AIG) and auto industry (GM and Chrysler). Now AIG has announced a pln to pay back wits portion where as the UAW, I mean GM will most likely never repay its portion.
Of the banks Bof A and Citi still has some outstanding and some regionals still have some but it is offset by the money paid and the value of the warrents of the others.
As far as the paperwork goes. THe banks need to clean it up and the courts should put the foreclosure on hold until the paperwork is cleaned up, but it should not negate the banks interest in the property and its rights to proceed.
It should also not retroactively recind foreclosures which have already been approved over technicalities. It can require the bank to correct paperwork errors. It can fine the bank. But it should not rescind, except for cases where the foreclosure was made in error.
You start rescinding foreclosures and you put in doubt the titles of everyone that has purchased a REO. That would bring the housing market to a sudden and long lasting stop.
Of course there is the other portion of TARP such as the HAMP program. The 30 billion used to for subsidising the refinancing of homeowners. Now that will remain as a negative because unlike the other portions that was designed to be an expense. So to summerize:
Bank portion - Banks will return more then invested
Insurance - Expected to break even
Auto Industry - Expected to be atleast a 17 billion dollar loss
HAMP - 30 Billion expense.
Now is that the bailout program you were referring to?
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