Foreclosed by confusion, delays, inflexibility

Preventing home foreclosures has become national policy. The US Treasury Secretary has said so and Congress is trying to pass legislation to help. Full Story
Grand Rapids Taxpayer

Muskegon, MI

#1 Sep 14, 2008
Get an attorney.The only way to save your home is to declare bankrupsy.You will get action from your lender.The lenders want the homes with the most equity.Do not think credit unions are above this behavior or practices.The unknown in this case is you can buy your home back but at the price it was sold for.So if you owe 50K and it is sold for 100k you gotta buy it back for the 100k.
In Michigan you are not required to get the same notices as other states.It is a swift moving situation and delay on the part of the lender gives them the advantage, they have tons of your money and then your home!
This situation is a mess and no matter how hard you try you can not win unless you take legal action against the lender.

Since: Apr 08

Grand Rapids MI

#3 Sep 14, 2008
You know, he's absolutely right! Just keep making your payments, even if you don't have the money. See, it'll all work out in the end.
Lenders only seem to hear and understand a lawyer standing in thier face! 90% of the reason we're in this mess now is the inflexibility of the financial institutions. Bank's do not want to own houses. simple. People do not pen their name to contracts with the intention to forefit the first chance they get. Illness, lost employment, ballooning interest rates and an unwillingness to adjust the terms of the loan to present conditions all contribute to the mess we're in now.
John M

Whitehall, MI

#4 Sep 14, 2008
You would think with the current crisis they are in with all these homes going down the mortgage company would just agree to extend your loan one more year and give you a one year reprieve to get things back on track. Whether your paying on a 30 year mortgage or a 31 yr mortgage what diference to the mortgage company does it make if they extend it one year to let families catch up?
Neko

Holland, MI

#5 Sep 15, 2008
Rich S wrote:
You know, he's absolutely right! Just keep making your payments, even if you don't have the money. See, it'll all work out in the end.
Lenders only seem to hear and understand a lawyer standing in thier face! 90% of the reason we're in this mess now is the inflexibility of the financial institutions. Bank's do not want to own houses. simple. People do not pen their name to contracts with the intention to forefit the first chance they get. Illness, lost employment, ballooning interest rates and an unwillingness to adjust the terms of the loan to present conditions all contribute to the mess we're in now.
Banks are sitting on their repos and not putting them on the market or up for bids.

Instead they got a handout from the FED to pay the property taxes on the repos so they can hold them until the market recovers.(Big IF)

Lots of brand new "empty" $700,000 plus mansions out there...built for the "Upper Crust" that never came!

Time to put them up for sale to the higgest bidder....even if it is a dollar!

No more pandering to the wealthy few who have millions left to "invest" after paying their bills and taxes!

Especially people who built factories in China to avoid US Income taxes!(Good reason to DEPORT the CEO of Amway....if he loves making money in China he should be living there!)

Bush supporters can have their "bankruptcy reform" cake and eat it!

Have a happy "Meltdown Day" everyone!

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#6 Sep 15, 2008
John M wrote:
You would think with the current crisis they are in with all these homes going down the mortgage company would just agree to extend your loan one more year and give you a one year reprieve to get things back on track. Whether your paying on a 30 year mortgage or a 31 yr mortgage what diference to the mortgage company does it make if they extend it one year to let families catch up?
That makes way too much sense. Sense like that is way beyond the scope of most bankers or mortgage lenders. Apparently they would rather sit on a bunch of empty homes. Although I'm no banking or mortgage expert, but if the homes are on their books they may not have to "write down" that loss, thus keeping their books looking good, even if it's a false impression.
Batch37 Pain Is Good

United States

#8 Sep 15, 2008
Typical White Person wrote:
<quoted text>
Unwilling to adjust terms????
In that case, if a young couple get promotions at work and earn more money, should banks be able to request "adjusting" their payments upward? Of course not. People who take on too much debt and huge payments know what they are doing.... and now they're so over-extended that one little hiccup sends their lives crashing.
Stop spending money like a drunken sailor and honor your word.
Remember when Congress issued mandates to Banks to make mortgages easier to get by all people? They forbid the practice of discriminating applicants and "Red Zones" in communities. So it did not matter if the applicant had good credit or income. Free money isn't free.
Neko

United States

#9 Sep 15, 2008
Hurley35 wrote:
<quoted text>That makes way too much sense. Sense like that is way beyond the scope of most bankers or mortgage lenders. Apparently they would rather sit on a bunch of empty homes. Although I'm no banking or mortgage expert, but if the homes are on their books they may not have to "write down" that loss, thus keeping their books looking good, even if it's a false impression.
I am thinking of withdrawing all my savings and trading it for gold...platinum, cadnium, or copper.(Contrary to popular belief these metals are NOT going up in price... it is just your dollar is worth less.)

The rate of inflation makes savings acounts in banks a stupid idea! And every bailout by the government makes the dollar worth even less.

I'll bet all those gangstas who laundered their cash into bling are happy campers!

If there is something you want....but it now or next week you might not be able to aford it!

So listen up bankers...

Time to cough up a higher interest rate for us people who save...otherwise you will no longer have the use of my money!

Not Kidding!

People who save and pay their bills shouldn't be "punished" for the actions of a few "greedy" money managers who "guessed" wrong!

(We need a tar and feather party for the media heads who keep telling us the ecomomy is Good!)

Have a happy "meltdown day"!
Old Rocker

Encino, CA

#10 Sep 15, 2008
Everyone wants to live in a nice home. The problem is, that too many people do not think of the worst case scenerio BEFORE they sign the contracts. They get all glassy eyed about buying a house and often don't think things through carefully. Homeowners must have a plan B.
We can't prepare for everything, but simple common sense seems to have gone out the window.

Then when bad things happen (losing a job), These people want the govt. to bail them out. Maybe they should just let the house go back to the bank and live like a pauper for a year or two until they can save some money and get back on their feet. I for one do not want to see tax dollars spent to bail out homeowners who can't make their payments. All of us are not entitled to own a home. We have to earn that privilige. Don't bite off more than you can chew.

I know I will be accused of being heartless, but I am merely thinking logically.

Since: Jun 08

Caledonia, MI

#12 Sep 15, 2008
Old Rocker wrote:
Everyone wants to live in a nice home. The problem is, that too many people do not think of the worst case scenerio BEFORE they sign the contracts. They get all glassy eyed about buying a house and often don't think things through carefully. Homeowners must have a plan B.
We can't prepare for everything, but simple common sense seems to have gone out the window.
Then when bad things happen (losing a job), These people want the govt. to bail them out. Maybe they should just let the house go back to the bank and live like a pauper for a year or two until they can save some money and get back on their feet. I for one do not want to see tax dollars spent to bail out homeowners who can't make their payments. All of us are not entitled to own a home. We have to earn that privilige. Don't bite off more than you can chew.
I know I will be accused of being heartless, but I am merely thinking logically.
You make perfect sense. I had a very nice ranch-style home with a pool and nice yard. It was nicely finished to my specific tastes. Then the economy started to become more and more bleak. Local businesses continually reported mass lay-offs and jobs being sent afar. My husband's employer happened to be one of those notorious companies. We decided to play it safe and downsize. We bought an ugly house that was foreclosed upon. My house payment is now half what we were paying. Luckily, my husband is still gainfully employed, but if he had been fired, we wouldn't have been able to afford my lovely ranch home. We took preventative measures to assure foreclosure would not happen to us. We can live in our crappy house on one income. We're slowly making it a more livable home. In the meantime, we're just going to have to be patient. Yes, it's easy to be swept away in that wonderful dream of a beautiful home with the white picket fence...but no one should expect that it's just handed to them.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#13 Sep 15, 2008
Typical White Person wrote:
<quoted text>
You're 100% right. Glenn Beck was re-playing Bush's speech from '02 or '03 when he called for increased homeownership. It was humorous in retrospect to listen to Bush state ".....there's too much fine print.." and "....we need to make it easier...".
And I'm not bashing Bush for his effort. Studies have proven that homeownership results in stable and safer communities. Unfortunately, Bush had too much faith in people's personal morals and integrity. That was his biggest mistake.
Issuing 120% mortgages didn't help any either. Neither did home equity lines of credit.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#15 Sep 15, 2008
Typical White Person wrote:
<quoted text>
You got that right. When people started jumping on that crap, the wife and I would say "this is going to end badly...."
Some other funny products were "interest only loans" and 80/20's. That stuff was last tried in 1927 and 1928.... remember how that ended?
Yeah, borrowing against equity that doesn't exist. The did do that in the 20's as well. Borrowed money to play the market. It worked, until the banks called their money in and the investors didn't have it. Waaaay too many similarities between then and now. I don't remember it, I'm too young, but my grandparents sure did. Out of that experience they had this big thing about paying CASH (you know that stuff that goes in your wallet that's not made of plastic) for everything, except a FIRST house (after the first you saved for the next and you didn't even think about buying the first until you had 20-30% to put down on it). And my grandparents were nice enough to pass that information, knowledge and experience down the family tree. I for one am glad they did.

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