Besides the Banks, crooked, predatory "fly by night" morgage companies / brokers, realtors and appraisers have a hand in this whole mess too! These
people outright LIE to you, and I learned this lesson the hard way......anyways, thought I would share some information I learned a few years back
when I worked for property management Co.
My boss ended up buying a bunch of "de-faulted" loans, these things are sold in "groups", so let's say Chase bank wants to "un-load" a bunch of bad
loans, they sell the "deeds" to those houses at pennies on the dollar to basically anyone who has the money and sets up an "investments, LTD, company.
My boss hired a lady with real-estate lisence to run this new co. and my assignment for 6 mns ( thank God, it wasn't longer, I was trying to "save" my
house, but once I understood what I was helping with and what the Co. was doing, the "moral" implications bothered me a great deal. ) was to be her
All of these properties were in USA, but all were in different states then where I live, CA, alot of Michagen, Ohio, Arkansas, Oklahoma properties as
I can remember. Now the the homeowners have no idea thier mortgage has been sold, and most believe thier home has already been foreclosed on, and had
no idea they even still had rights to that home and infact we needed them to either agree to sell the home or re-negotiate a new loan with the co. I
worked for, which was the only "silver lining" to this job, some people got some Great new mortgages if they had not already left thier home or wanted
to move back into thier home rather then sign the papers to sell. A "real" foreclosure" could be done by our co. if no deal could be made with the
homeowner, but that was the the least desirable outcome. ( lol, that's where those whole get rich quick schemes come from, some property is just
abandoned, even by the "deed" holder and sold at auctions if you pay whatever taxes are owed.)
Now this is the part that blew my mind, most of the properties that were bought valued between 25k to 150k, if sold at market value, the actual cost
that my co. paid was under 5k for most of them, it was crazy, and we're talking very modest homes of working class families, what if they could have
bought back thier own home at the same price the bank was willing to sell it for? Wow and heck the banks still could have even doubled thier money
if they were even willing to meet half way, heck, even 10% of the way.
Homeowner owes 50k, bank sells deed to 3rd party for 5k, original bank has "washed" thier hands "clean" of "responsibility", lol, I know my boss
ultimately regretted getting into this whole mess, and to his credit he really had a heart, and gave people some amazing deals that wouldn't have been
offered by a "conventional" bank.
Anyways that's my thoughts on the subject, if you are in a situation of foreclosure, find out who actually holds your "deed" and try and make contact
with them, understand you are in a situation to "bargain". I would also say don't leave your house, pay as much as you can, if those payments are
accepted, even if under the full amount due, it makes a difference legally. Gosh, the stories and situations people were in was beyond heartbreaking,
death, illness, military families, and you really could tell the difference between "deadbeats" and nice people being dealt a bad hand.
Last but not least ,to folks that feel resentful toward others that got caught up in this whole mess, and lost thier homes, I understand your
frustration, and acknowledge the hard work and effort you have put in to paying off your homes, but I will ask you to please consider, if the
government has the right to take away your home if "deemed" in" OUR " countries "best interest", how safe is your home?
In hindsight if I understood then, what I do now, I would have never given up our home so easily, we had 105k down payment invested, plus 3 years
payments on loan, the "DUMB- ASS" thing I did was to re-finance the loan, and for those that say "hey you signed the papers, too bad , too sad" our
so "helpful" mortgage broker was a no show and unavailable by phone when the Notary lady showed up at our house at 7 pm in the evening to have us sign
My original intent was to re-finance our loan, knowing that our payments were going to go up, based on the DUMB-ASS deal we made to begin with, I'm
talking our payments going up by $800 , lol, it's so funny cause I remember when I raised this concern at the time our real-estate agent said "well,
in 2 yrs you'll be doing better, and honestly I believed that at that time.
Anyways.......live and learn, these folks are "slick" and it's way more complicated then I understood at that time.
edit on 15-4-2012 by MountainLaurel because: (no reason given)