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Foreclosures Are More Profitable Than Loan Modifications, According To New Report
Foreclosures Are More Profitable Than Loan Modifications, According To New Report.
Mortgage companies are more likely to foreclose on homeowners than modify their loans because they make more money off foreclosures, argues a new report by a consumer advocacy group.
16 Responses to “Foreclosures Are More Profitable Than Loan Modifications, According To New Report”
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February 24th, 2010 at 11:52 pm
During the housing boom, lenders passed around mortgages as if they were whiskey bottles at a frat party. Notes were lost, destroyed, sold into multiple pools. Mortgages were not recorded and exorbitant fees were collected by the big firms on Wall Street.
Now that the bubble has burst, “lenders” are trying to collect on loans they do not own, in most cases never lent a dime on the transaction, have no right to, or were paid 30 times over in bailouts, insurance, credit default swaps, etc.
They are doing this because they can. They are steamrolling the courts rocket dockets because hardly anyone is contesting their foreclosures. Think about it. If you could go into a court and file thousands of foreclosures a week, and only a mere 10% challenged the authority of the foreclosing entity, what would you do if you were the greedy bankster?
The crises is even worse in non judicial states…
In almost every case these pretender lenders do not and did not own the loan. Almost all loans during the boom were securitized and it was investors that put up the money. Not the banks.
Now these “pretender lenders” along with MERS are trying to steal the homes by filing fraudulent assignments, by the thousands, to process the foreclosures.
Don’t believe me? See for you yourself.
http://4closurefraud.wordpress.com/
4closureFraud
March 1st, 2010 at 3:14 pm
I have a friend who has been trying to refinance since February when she lost her job. She has never been late or missed a payment in almost a decade Chase lost her paperwork three times. She has the proof that she faxed and mailed the documents. They keep delaying; it must be lucrative for them to do so.
This is fvcked-up behavior.
March 1st, 2010 at 4:30 pm
This is America all right. But it’s their America, run for and by, Banksters. It is not your America any more they own it. Obama obviously carries their water. They got the Tarp. They got free access to the Fed money machine. They got the ’stay out of jail’ free pass. They got to keep their jobs and their money. They have lobbyists, you don’t. It is their America. They will do what is best for them. All this should be obvious by now. Get used to it.
March 1st, 2010 at 5:46 pm
You know where this story is going don’t you folks !!
I see more forclosures down the pike and thusly more Americans losing their homes !!
And the beat goes on !!!
March 1st, 2010 at 7:03 pm
By now , the truth has become too obvious to deny : The big boys manipulated every aspect of the entire fiasco . It went like this : Inflate the value of homes , ease up on qualification standards and relentlessly entice the unsuspecting into borrowing against the equity that magically appeared . Once that was successful , pull the rug out from under the whole card game , forcing people to lose the homes they used to be able to afford , until they lost an income or saw a huge income deficit due to various things initiated by fear of the future of the economy tanking . Fleecing people of their homes , their jobs , futures and sometimes families . A nation of debt slaves created over a long term effort . Foreclosed homes plus the real money paid toward the inflated values , lost as well . At least to the borrower : the lenders made out very well . They got the bailout , the homes and the apparent power to do whatever they feel like doing to the working people , the now “debtor class” , the ones who pay for the wars with their taxes , children , and what they believe to be patriotism .
March 2nd, 2010 at 6:32 am
The moral of this story is don’t go to banks expecting some compassion or appreciation for being a long time customer
Go to a bank expecting them to treat you like a chump and maybe you’ll get a toaster for setting up a savings account so they can use your money to make more money.
March 2nd, 2010 at 9:04 am
Thank you. I wondered what was going on with my mortgage. Now I know why the companies would rather not be paid than negotiate. It’s so disturbing that profit in this country is no longer tied to products or services.
March 2nd, 2010 at 11:40 am
Seems to me right here’s the problem: “no penalty, but potential profit, if the home is foreclosed.” Consider any foreclosure the servicer’s failure. Failures should be penalized in some fashion. Make them hurt as badly as it hurts the home owner!
March 2nd, 2010 at 2:07 pm
And that is why they have no motivation what so ever to modify existing loans to help people in thier homes.
March 2nd, 2010 at 8:28 pm
Check out the state of your state:
http://www.realtytrac.com/pub/landing/landingmedia.asp?optimized=3&accnt=149145
Just click on your state, and enter a zip code.
I recommend you don’t do this before bedtime.
March 2nd, 2010 at 10:59 pm
Some community Organizer we have for a President over seeing the greatest displacement of Americans in our History and doing almost nothing and saying absolutely nothing on these people’s behalf…!
What would Dr. King say, what would RFK say or do about this…?
March 3rd, 2010 at 12:27 am
The housing market is not a charity and it is not a giant social experiment. The owners of the mortgages should decide on their fate as they see fit. I hold the government responsible for this mess because of their backward policies that created entities like Freddie Mac and Fannie Mae, their role in making money so cheap that it was flowing in rivers during the boom, their support of putting people in homes that could never afford them in the name of some sort of social justice, and their bailing out of the banks that they should have let fail for getting too greedy and ultimately sinking their own balance sheets. I hold homeowners responsible for buying everything their broker told them and burying their heads when it came to common sense about what they could afford. I hold the banks responsible for taking advantage of the credit boom to make as much money as possible even though it was unsustainable and they should have seen what was coming.
It’s sick to me how liberals have turned this issue into a means of winning votes at the expense of reality. They’ll blame it all on the banks because they don’t want to accept any of the blame themselves, and they want to preserve their false image of protecting the little guy so they’ll paint all the homeowners as helpless victims. It’s so convenient to blame it all on a bunch of executives when pretty much everyone involved was guilty.
March 3rd, 2010 at 1:49 am
We can rest assured in this broken and ailing country that any and all business and government processes are run based upon maximum profits above all else - even humanity itself.
Children of America be damned to hunger, ill-health and tent cities - there is money to be made!!
Predatory capitalism is God(!) in the land of greed and the home of the depraved.
March 3rd, 2010 at 3:10 am
There was recently a very interesting decision handed down from the Kansas Supreme Court. In essence, they stated that these mortgage service companies did not have the right to foreclose on homes because they do not own the actual mortgage, so they have no legal standing in a foreclosure action.
March 3rd, 2010 at 4:30 am
WOW!!! Did someone just wake up and smell the coffee? This has been obvious from nearly day one and, in fact, I made a comment of this nature at least 6 weeks ago to an article about how mortgage renegotiation were going slow.
Mortgage holders make more money by adding on the late fees and penalties even if the mortgage goes into foreclosure because they have the higher balance that appears on their books when they finally foreclose. This is to their advantage when they finally have to go to court for any settlement of the debt and can be factored into how much money they can write down against future profits. Essentially, we the taxpayer, are giving the mortgage holders more money to foreclose by allowing them to take this higher loss against future income.
March 3rd, 2010 at 7:28 pm
as I am now in the first stages of fore closer for the first time in my life ( can not find work any where )
how nice to know some one will profit off of my hard time !!
getting kicked in the teeth is so painful the bank will buy my loan for 5 cent,s on the dollar
how I wish I could have been given such a deal !!