1 in 5 mortgages that got an Obama mortgage modification is in redefault. Good to see "our" money went to bail out folks that have once again proved they shouldn't have been homeowners to begin with.
One in five homeowners whose mortgages were modified under a program aimed at reducing foreclosures defaulted again within a year after their payments were cut, the U.S. Comptroller of the Currency reported today.
Twenty percent of modified loans were at least 90 days delinquent within a year in the second quarter, according to the Comptroller's "Mortgage Metrics Report." Delinquencies for loans 30 to 59 days late increased 0.4 percentage points to 3 percent from the previous quarter,
"Foreclosures may continue to increase in future quarters as a large number of foreclosures work through the process and alternatives to foreclosure are exhausted," the Comptroller, a division of the U.S. Treasury Department, said in a statement.
Along the lines of foreclosure, comes this from the guy that "turns the lights out" after your home gets taken back by the bank:
When a lender forecloses on a property, one of the first things he does is send somebody out to see if there is a house still standing and whether there’s anybody living there. That’s my job. Sometimes the houses are crack dens or meth labs, sometimes the sites of cock- or dog-fighting operations, sometimes the backyard is filled with pot. And sometimes the house is a waterfront mansion in a gated golf community worth well over seven figures. Variety is the rule.
Some people have been expecting me. Some claim they never knew they were foreclosed on or tell me that they have worked something out with their lender. Some won’t tell me a thing. If nobody is home, I have to determine where they are — at work, on vacation, in the Army, in jail, in a nursing home, dead or moved away. It isn’t easy.
Many lenders are willing to negotiate with the occupants instead of taking them to court. In exchange for surrendering a property in reasonably clean condition with the furnace still hooked up, the kitchen not stripped and the basement not intentionally flooded, the lender will cut the occupants a check. When I explain that the lender is offering them money to leave, sometimes they tell me that they haven’t slept for months, not knowing if tomorrow would be the day when somebody kicks in their door and throws their kids out on the lawn. You can hear the release of a massive weight in their voices. It isn’t much, but at least it’s something.
Read the whole thing.
I'm torn here.
I truly feel sorrow and compassion for the decent, hard-working people that are having/have had their lives turned upside down after losing their job, and then losing their home. They played by the rules, had a bad turn, and are now forced to face a new reality.
I don't feel bad for those people that lied about their income, those that bought more house than they could afford, and those people that were "tricked" into getting an adjustable rate mortgage.
Reading about the mortgage "closer" in the second link breaks my heart for the people in the first group. If "we" hadn't wasted time in D.C. on legislation that did nothing to help the overall jobs picture, the mess we find ourselves in now wouldn't be as bad.
2012 can't come soon enough.
Recent Comments