Comments on: Lack Of Communication Leads To Foreclosure Problems http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Cleveland Real Estate http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/comment-page-1/#comment-117285 Cleveland Real Estate Wed, 28 Nov 2007 03:55:35 +0000 http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/#comment-117285 (Not to mention the lack of English speaking customer service reps that prolong the "assistance" process.) Frustrating. It's an awful situation starting from before the mortgage holders get involved. The reason so many are in this sitution and not being cared for is the same boat they were in before the payments were being made. The ones who started these loans, appraised them, funded them, and ultimately sold them the homes. They are just as involved in the national disaster as the final mortgage holders. There needs to be accountability, responsibility, and assistance for the many thousands facing ARMS, 0 equity to refi, and payments that are no longer affordable. Ignorance is not an excuse obviously. The ones signing the paperwork and taking on such risks are ultimately responsible for the final outcome...but with the rapid rate of foreclosure and ARMS coming into play...You'd think the greed and money behind all this would settle... perhaps lowering the interest rates to assist and save the loans... I've seen many go from a 6% to an 11% and the homeowner and bank suffers... It's a lose, lose. When this happens, the homeowners that are in good standing and need to sell or refinance can't. They face the downward track of neighboring market values declining and they're stuck as well. Ultimately the mortgage holders lose again with the lack of new refi's. Someone needs to win. As it stands now, it's the investors buying up rental property. They will see the greatest return out of all of this as thousands of decent homeowners flood into rental properties. (Not to mention the lack of English speaking customer service reps that prolong the “assistance” process.)

Frustrating.

It’s an awful situation starting from before the mortgage holders get involved. The reason so many are in this sitution and not being cared for is the same boat they were in before the payments were being made. The ones who started these loans, appraised them, funded them, and ultimately sold them the homes. They are just as involved in the national disaster as the final mortgage holders.

There needs to be accountability, responsibility, and assistance for the many thousands facing ARMS, 0 equity to refi, and payments that are no longer affordable.

Ignorance is not an excuse obviously. The ones signing the paperwork and taking on such risks are ultimately responsible for the final outcome…but with the rapid rate of foreclosure and ARMS coming into play…You’d think the greed and money behind all this would settle… perhaps lowering the interest rates to assist and save the loans… I’ve seen many go from a 6% to an 11% and the homeowner and bank suffers… It’s a lose, lose.

When this happens, the homeowners that are in good standing and need to sell or refinance can’t. They face the downward track of neighboring market values declining and they’re stuck as well. Ultimately the mortgage holders lose again with the lack of new refi’s.

Someone needs to win. As it stands now, it’s the investors buying up rental property. They will see the greatest return out of all of this as thousands of decent homeowners flood into rental properties.

]]> By: RIchard Geller http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/comment-page-1/#comment-116835 RIchard Geller Tue, 27 Nov 2007 20:56:33 +0000 http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/#comment-116835 I just blogged on your post, it's just what we need to continually remember. Great blog, thanks --Richard I just blogged on your post, it’s just what we need to continually remember.

Great blog, thanks

–Richard

]]> By: Mark Harrison http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/comment-page-1/#comment-116622 Mark Harrison Tue, 27 Nov 2007 17:48:32 +0000 http://www.therealestatebloggers.com/2007/11/27/lack-of-communication-leads-to-foreclosure-problems/#comment-116622 As I understand it, one of the huge problems is actually working out who currently "holds" the loan. I've had to do quite a lot of research about "securitisation" for an article on the UK Housing market, and this seems to be one of the recurrent themes: When a lender securitises a loan, they no longer have a particular interest in resolving issues, because it's not THEM who stands to lose through default :-( As I understand it, one of the huge problems is actually working out who currently “holds” the loan.

I’ve had to do quite a lot of research about “securitisation” for an article on the UK Housing market, and this seems to be one of the recurrent themes:

When a lender securitises a loan, they no longer have a particular interest in resolving issues, because it’s not THEM who stands to lose through default :-(

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