The trouble for homeowners isn’t over yet.
According to a November 19th press release by the Mortgage Banker Association, almost 10 percent of mortgage-holders were at least one payment past due in the third quarter of the year. And the percentage of loans at least 90 days past due is at an all-time record, as is the percentage of loans in foreclosure.
What’s interesting is that some banks are not foreclosing. You have heard me correct, they are letting people stay in their home, without payment, and not forcing them out. Why would this be? They are saying it’s because they are “overloaded” with delinquencies. The reality is that in some cases, it is more beneficial for the banks to not collect payments, than take back “another” home.
What’s frustrating is how the media is talking about the real estate market “recovering.” That’s interesting, how can we possibly be at the bottom of this market when banks are letting people live in their homes with no payments.
Do you know anyone who is currently living in their home without paying? Tell me the story below!
Don’t know anyone on that predicament.
Gabriel
Hi Philip,
I know a lot of people staying in their homes down to non-payment of their mortgages for a month, 3 months, and even up to 9 months and more than a year.
J Percival
There are great posts – THANK YOU!!!
With this infromation, I will continue my push with our lawmakers.
Here’s to a great 2010!
i am live in my bass’s home and pay for the money everymonth.
Looks like some banks are beginning to have sense. A close relative of mine went for months without paying his mortgage after his business went down. He waited to be thrown out but it never happened. Now that his business is doing okay (notice I didn’t say good) the bank has agreed to modify his loan. Better than to lose more money on a derelict house. There are some banks that will never see sense; amazingly, some of them are the same ones we rescued.
We’ve been missing payments since April after working with a real estate attorney/mortgage firm. It took several faxes and finally e-mail all our documents. The robocalls asking us to call B of A finally stopped about November. We call every week or two just to stay in touch. We’ve gotten a Notice of Default in July but nothing further except that a loan mod is still “under consideration” Its as if they are in no hurry to work it out. Our PITI is less than 31% of our gross income so we may not qualify but are applying based on hardship, reduced income, medical expenses, etc and loss of equity. We’re stacking the cash to be ready to settle whey they are. By hiring an attorney ahead of time, they say none of their clients have been foreclosed on.
A friend of mine owns a house in Northern part of L.A., financed by the BofA mortgage company. He’d purchased the house some ten years ago, when it was so easy to qualify. But the price has been about three time the recent value of the house. Since he had expected the foreclosure and the sheriff’s deputies, he had moved out of the house with all his family. But since then the building department made him do some neccessary repairs, so he started renting the house out. Since then, the mortgage company did not even bother to respond to his letters, including his offer to purchase the property for a reasonable price. Now it appears to me that they are waiting for the better times to come, while they are having someone who prevents the house from falling apart.And the eventual loss shall be deductible from the future sale price. How smart, indeed !
We are currently living in our home with 10-months of no payments. i am a General Contractor in CA and had back surgery in July so haven’t had much income. My wife was diagnosed with CANCER in April and was released to part-time work in October. The bank has not forclosed because they say they would rather Modify the terms and are waiting a little longer to see if we can prove income.
Hi Philip,
I went through a foreclosure about 1 1/2 years ago. I lost my job, and couldn’t find anything that paid enough to keep my house. I stayed about a year without making a payment but kept in contact with them dailt on my status. They seemed to want to work with me at first, bit when I found work, made them a proposal and sent my paperwork as instructed, they said that it arrived too late. It was faxed! My house didn’t sell at auction so the bank just took it back. They turned around and sold it 3 mo. later for 1/4 of what they said I owed them. I was in the home for 9 yrs.and if they would have worked with me, I could still be there. The whole housing situation is very frustrating and scary. Something has to change. Thank you for your time.
We are trying to get approved on a hardship on our mortage payments. We faxed all the things that they asked us to fax them. Now they are saying they are not the right things, after we called several times before faxing everything. This is with Beneficial. Do you have any suggestions for some help? Thanks, Paul
Paul – keep trying to contact them, and keep a detailed paper trail. As you can see from some of these comments, banks are not doing things that acutally make sense right now. You paper trail will protect your interest.