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what happened to all the loan mods that didn't work out?

I have been selling reo properties for over 20 years and things were great. Now for the last 3 years most are gone and all short sales are being sold. But what happened to all those vacant homes that are just sitting there? where are all the fc that should be happening to the loan mods that couldn't be helped? Any ideas from anyone when we might see the next wave of vacant properties to hit? Also where is all the inventory from these banks?

 

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Comment by Diane Amato on August 9, 2013 at 7:31am

I need some help if possible.

I have a problem and mine is with BoA and Deutsche Bank. I have the loan numbers and want to by specific notes but I keep hitting walls and cannot find the correct person to speak with. If you have a contact for these note purchases please share with me and I will do the same.
thank you
dianemamato@yahoo.com

Comment by Durward Blanks on August 8, 2013 at 10:19pm

Marvin,

Thanks for your comments.  You have a lot of insight.  I've seen the growth charts and other items left behind. Took an REO one time and found boxes forgotten in the attic.  Photos and other mementos that couldn't be replaced.  Took some work, but we found the family to return the boxes.  There are some now that have been hit hard, through no fault of their own.  Those get to you.  
Marvin, hope the ice water did the trick :)

Comment by George Avakian on August 5, 2013 at 10:39pm

Well in my opinion the market is over-inflated due to the lack of REO on the market. Banks on the other hand are turning in record profits. I think they are keeping the REO off the market to bring up prices while banks have record profit since they don't have to take the loss until they dispose of the property. Let's not forget that the banks have been nationalized so the government controls the market.

Comment by Marvin Von Renchler on August 4, 2013 at 2:09pm

Durward you said a mouthfull but there are more facets to this story/problem. I have been quoted (Actualy they MIS quoted me a bit for emphasis, which made me look like a mean person) by Reuters News as saying that I didnt shed a tear for the 'poor public'  I had been telling the reporter that one must pay attention to the whole story and all the truths contained in it.  Truth is nobody ever guaranteed any borrower would keep their job! Nobody guaranteed that equity would always go up. Nobody guaranteed the borrowers health. All borrowers were adults who signed for a debt. Even those wh used 'no income verification' loans and didnt even put an income figure in knew that they couldnt really afford it but did anyway.  So I said that an Reuters used me as a card in the lenders deck. They didnt use all the other things I said. Number one is the fact that to do ANY change to the loans, as per new government regs, the borrower had to be two months behind. I personally know people who just had one or two bad months and simply wanted the lenders to defer a payment or two to be made up later. That used to happen in the 'old days'. Refer to what I wrote below about the lenders telling folks to stop paying. This wasnt the borrowers fault! They didnt know that the lenders were going to lie, play games and sabotage the process for months then come back and demand all the back due.  Many people would still be in their homes if the lenders had just helped a little. By the way, notice how many lenders are now pushing 10 year loans? They want these things turned over. It used to be that they wanted them out as long as possible. The world has changed before our eyes.  Regarding WRONGFUL FORECLOSURE---there were/are many mistakes in the lenders process. There were/are many mistakes in the accounting on ARM loans. There were.are many ILLEGAL actions by the lenders, mostly concerning the method by which they turn people down for loan mods. Then there is the infamous MERS issue. My own MERS assignment paperwork has total forgery and fraud. So, some people used anything they could to try and stay in their homes regardless of 'fault'. Some lawyers will try anything they can just to get the fees. MANY companies advertising to save your home and do loan mods, etc. were illegal and have been shut down or are under investigation. As a mortgage broker from 1983 to 2009, I still receive all industry blurbs, updates and decisions regarding lending in general..

 

Did a lot of people just walk away from their homes because they were upside down even if they could make payments? Sure! I have contempt for them. For all the others, you guys all know what its like to walk into all these empty houses that have the doorway marks where the parents kept the growth records of their kids. The crayola drawings sometimes left on the walls, etc. Each one is a terribly sad story. Many of them didnt have to be but the government made it possible for the lenders to steal the houses. Im all worked up now---have to go get some ice water, lol

Comment by Durward Blanks on August 3, 2013 at 5:26pm

Marvin, I agree with Diane, that is a great explanation.  This "Hardest Hit" program was such a joke too!  
NRT assigned me a property in Jan.  The "owner" was a young man that had been injured and lost his job.  He had not paid for almost a year, foreclosed and still there.  On my first encounter he said he was working with a lawyer to get a load mod on the hardest hit program.  This went on for a while and he was denied, they appealed.  Every week, I did my duty driving by for photo.  As I got to know this man, I learned that his lawyer was going to sue for WRONGFUL FORECLOSURE.... Huh?  This man claimed to be a Christian, and we even prayed together.  I asked him if he had signed mortgage papers 9 yrs ago, agreeing to the terms of payment.  "Yes".  Have you lived up to the agreement?  "No, I can't because I don't have a job".  So, Mr resident, if you agreed to pay for the house, haven't made a payment in a year, how is is "wrongful foreclosure?"  His answer cracked me up... "I'll have to ask my lawyer"  I told him he should pray about it instead of asking his lawyer.  This went on for a while, and just as he gave up and was moving out the lender dropped NRT, and I didn't get the listing. 
The man's last words to me were "I should have listened to you, the lawyer was just trying to get more money"  

So, in addition to the corrupt government and banks, we have shyster lawyers giving people false hope.  

The few loan mods that did happen will be back on the market next year.  They couldn't make payments before and won't be able to in the long term, forcing more REOs on the market.  And thanks to our wonderful gov't system, the bankers are the only winners. WE (taxpayers) foot the bill for the bank and the former homeowners. 

Comment by Kathryn -Sharp-Jordan on August 3, 2013 at 3:28pm

Well said Marvin! It is mind boggling.....

Comment by Diane Amato on August 3, 2013 at 1:58pm

Thank you for the feed bank Marvin. It was wonderfull. I see many hedge funds purchasing bulk orders but for some reason in MA there just isn't much inventory- not even short sales. properties are just sitting and homeowners have been living 1-2 years without paying the mortgage but still hardly any fc

 

Comment by Marvin Von Renchler on August 3, 2013 at 1:53pm

Fascinating subject. Very complicated. To nutshell it, Few institutions ever planned to actually modify loans. They would be stuck for years with a portfolio of lower return losses that probably couldnt be sold, if they had not already been. Our illustrious, all knowing and corrupt government didnt want the bankibg system to fail, even though it deserved to, so they started backing the banks/servicers and insuring that they wouldnt close or take losses. Part of this was accomplished by simply printing billions and giving it to them. (An economist can step in here and detail it)  Cant remember the bank name but our Gov gave 650 million to  it and at the time the reporter wrote about it, had only modified something like 55 loans!

 

They WANT to foreclose. Many reasons for it. Gov makes sure they dont really lose. PMI only pays of for foreclosure (Ive been told)  Takes old bad debts off books. REOP can appreciate. etc etc. I knew a lawyer who was going to every house in trouble. We actually crossed paths during some interiors. He told me that of 1500 owners---all had tried to loan mod. ALL had been told by their lender to STOP MAKING PAYMENTS, unofficially of course, and that started the loan mod process which became a months to years horror story ending many times with illegal turndown. In the good old days banks wouldnt have wanted inventory. In the good old days they didnt have staff to handle defaults, asset preservation, yadda yadda. In the good old days they didnt have Government screwing taxpayers and driving financial nails into out countries coffin by keeping the insitutions board of directors in fat.

 

So the entire system went into legal limbo as the supreme courts in states and the fed got into the many questions. Most famous is MERS. Banks didnt know what to do. BPOs for defaults stopped. BPOs for REOs slowed. BPOS for loan mods sure as heck stopped a long time ago.  With recent supreme court decisions mostly positive for MERS and other issues but against the homeowners, you 'could' see a rise in orders but I feel that the holders of these trust deeds and physical properties are going to be selling BULK to huge money groups who will keep them as rentals!! Its already happening, to the horror of real estate agents everywhere.

Comment by Diane Amato on August 1, 2013 at 9:33am

Hi Sam

thanks for the input

Comment by Sam Shueh on August 1, 2013 at 9:18am

They are trickling down the pipe line. Bankruptcy court, law suit. silent short sale, uncle Bob sale.... Yes, they come through tape, trustee mostly full of hungry fleas and  $1.25 on a $1 overpriced shacks requiring extensive repair.... No basement bargains here.

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