Banks paying defaulters incentives to short sale their homes
02-13-2012 | 11:34 AM
#1
Thread Starter
Racer
Joined: Sep 2007
Posts: 499
Likes: 6
Banks paying defaulters incentives to short sale their homes
Wow, looks like maybe I should have held out longer to strategically default! Now lenders are flat-out ENCOURAGING the tactic.
http://money.cnn.com/2012/02/10/real...ives/index.htm
http://money.cnn.com/2012/02/10/real...ives/index.htm
02-13-2012 | 11:57 AM
#2
Senior Moderator
iTrader: (2)
Joined: May 2000
Posts: 27,921
Likes: 1,080
From: where the weather suits my clothes
Did you even read the article? Or are you truly saying you would have tried to sell?
This is not aimed at those who simply walk away.
NEW YORK (CNNMoney) -- In an effort to cut their losses, banks are paying some struggling homeowners as much as $35,000 to sell their homes before they end up in foreclosure.
The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.
The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.
02-13-2012 | 12:00 PM
#3
Thread Starter
Racer
Joined: Sep 2007
Posts: 499
Likes: 6
[QUOTE=NSXNEXT;13550387]Did you even read the article? Or are you truly says g you would have tried to sell?
Hello...anybody home???
Homeowners who walk away = home owners who owe more than their home is worth and are seriously delinquient.
Strategic Defaulters strategically default because they fall into that exact category...did YOU not read the article? Or do you just not understand "strategic"
NEW YORK (CNNMoney) -- In an effort to cut their losses, banks are paying some struggling homeowners as much as $35,000 to sell their homes before they end up in foreclosure.
The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.
This is not aimed at those who simply walk away.
The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.
This is not aimed at those who simply walk away.
Homeowners who walk away = home owners who owe more than their home is worth and are seriously delinquient.
Strategic Defaulters strategically default because they fall into that exact category...did YOU not read the article? Or do you just not understand "strategic"
02-13-2012 | 12:04 PM
#4
Thread Starter
Racer
Joined: Sep 2007
Posts: 499
Likes: 6
physically walking away from a property (abandonment) is not the same as walking away from the mortgage. Both ultimately can have the same result obviously but I did not abandon my property, i STRATEGICALLY stayed there, kept it up, listed it for sale on the market with a reputable broker, found a buyer, and went through the whole process....in that process i became severely delinquient as it was the only way to get the banks to work with me. And, its a fact I was severely upside down. Those simple facts put me (any any other strategic defaulter out there) right in with the group who could potentially receive these incentives from the banks that the article describes.
02-13-2012 | 05:19 PM
#5
Safety Car
Joined: Jul 2007
Posts: 4,845
Likes: 145
"Cash for Keys" is a very old program to get people out of a house so the bank can try to sell it and to prevent the squatter/delinquent payer from causing further loss of value.
This is what my employer does. They manage foreclosed properties and even pre-foreclosed properties. Such a shame that houses are kept in better shape when a bank owns them than when people own them.
This is what my employer does. They manage foreclosed properties and even pre-foreclosed properties. Such a shame that houses are kept in better shape when a bank owns them than when people own them.
02-13-2012 | 06:47 PM
#6
I feel the need...
Joined: May 2004
Posts: 14,957
Likes: 515
From: Motown
Of course, their are no broader negative ramifications to the economy because of this.
Bubba, stick to one thread a$$hole. Enough gloating and showboating. You still haven't answered my questions in your other thread.
02-14-2012 | 09:09 PM
#7
Drifting
Joined: May 2006
Posts: 2,499
Likes: 221
From: Carlsbad, CA
It's a sad state of affairs indeed. I wonder how many of these 'poor' defaulters are like Angelique Pierce profiled in the article who probably put down < 20K to siphon 121K via REFI's and second mortgages- not a bad ROE now is it? She gains 101K and the evil bank establishment loses 205K.
short sale > default > strategic default (in terms of the scum factor in my book) At least the short seller is trying to get out of their situation in a timely manner.
short sale > default > strategic default (in terms of the scum factor in my book) At least the short seller is trying to get out of their situation in a timely manner.
Trending Topics
02-15-2012 | 09:38 AM
#8
Thread Starter
Racer
Joined: Sep 2007
Posts: 499
Likes: 6
It's a sad state of affairs indeed. I wonder how many of these 'poor' defaulters are like Angelique Pierce profiled in the article who probably put down < 20K to siphon 121K via REFI's and second mortgages- not a bad ROE now is it? She gains 101K and the evil bank establishment loses 205K.
short sale > default > strategic default (in terms of the scum factor in my book) At least the short seller is trying to get out of their situation in a timely manner.
short sale > default > strategic default (in terms of the scum factor in my book) At least the short seller is trying to get out of their situation in a timely manner.
strategic default is a means to an end. Short sale is the desired end result of a strategic default. Everything I did up to and during my strategic default was with the ultimate goal of a successful short sale in mind.
There is no "this one is better than that one"....its all the same
05-30-2012 | 05:21 PM
#9
I feel the need...
Joined: May 2004
Posts: 14,957
Likes: 515
From: Motown
Principal Reductions Won’t Solve the Mortgage Mess
Edward DeMarco, the temporary director of the Federal Housing Finance Agency, continues to endure blistering criticism for refusing to allow Fannie Mae and Freddie Mac to pay for large-scale principal reductions for underwater borrowers (those who owe more than their homes are worth) or to facilitate refinancings for those stuck with high interest rate mortgages.
The embattled regulator says he is merely trying to prevent Fannie and Freddie from adding to the more than $190 billion in losses that taxpayers have covered since September 2008. But Representative Elijah Cummings has labeled him “the biggest hurdle standing between our nation and the recovery of the housing market.” House Democrats have accused him of hiding data purportedly proving that principal reductions would save money and reduce foreclosures. And Representative Barney Frank has called for his resignation.
Beating up DeMarco may prove cathartic for policy makers looking to assign blame for economic doldrums. The proposed remedy, however -- having taxpayers pay for principal writedowns and mass refinancings -- would do little to solve the nation’s housing woes.....
The embattled regulator says he is merely trying to prevent Fannie and Freddie from adding to the more than $190 billion in losses that taxpayers have covered since September 2008. But Representative Elijah Cummings has labeled him “the biggest hurdle standing between our nation and the recovery of the housing market.” House Democrats have accused him of hiding data purportedly proving that principal reductions would save money and reduce foreclosures. And Representative Barney Frank has called for his resignation.
Beating up DeMarco may prove cathartic for policy makers looking to assign blame for economic doldrums. The proposed remedy, however -- having taxpayers pay for principal writedowns and mass refinancings -- would do little to solve the nation’s housing woes.....
05-30-2012 | 05:58 PM
#10
Meat stick
Joined: Jun 2004
Posts: 10,243
Likes: 229
From: NorCal
Best bet would be to allow Fannie/Freddie to pay off a portion of the overage - say 50% - to keep people in their homes, while allowing them to get a little bit better mortgage deal, but not sticking all of the rest of us with the entirety of the default (as happens with most foreclosures).
Thread
Thread Starter
Forum
Replies
Last Post
sockr1
Car Parts for Sale
22
10-01-2015 01:31 AM
Mugen TSX
Eastern Canada
0
09-01-2015 11:11 PM
Mugen TSX
Eastern Canada
0
09-01-2015 11:05 PM
