However short sales have helped a lot of people because they did not have to have the foreclosure notice on their credit for 10 years.

It’s a new day, new deal, new opportunity

Mike S. - Texo Properties

Sincerely,

The Foreclosure Doctor

It is hard to argue with your “it is more expensive” scenario as you hit the nail square on the head. Your “COMPS” remark is also right on point. You state 2011 as the possible turnaround date. Could very well be especially if more and more states adopt the go to court idea and it gets transformed into something they legislate.

Settlement conferences are wonderful tools. However, they have built in time constraints as you know. Plus, a settlement conference can be manipulated. Having said that, I need to say I realize it may be too far out for the virgin idea NY has introduced.

It is my opinion this is just the start of something we haven’t even imagined. After all, court decisions become stare decisis in a hurry and, as you know, are often used as persuaders in other jurisdictions.

Do a little research in the credit arena and you’ll see what may have started out as a good idea got twisted and turned and churned into something it was never intended. I think, stress think, we are seeing the first sands of what will be ground work in the foreclosure arena.

Oh yeah, the social security number - twisted, turned and churned completely out of shape. It has become the magic identifier which is a role it was never intended to play. Try getting a phone or electricity turned on without surrendering that little jewel.

Phew, I can’t wait for the next installment…

I know of lenders who are handing out forbearance agreement like candy, only because they are not able to handle the volume of foreclosures they’re already dealing with.

An example is when the bank or servicer gives an owner who is already 90 days late, a 6 month forbearance (no payments-no letters) with NO evidence that the 6 month will change the defaulting owners ability to short sell or refi or find any other solution during that period. The Banks and servicers are buying time! They are overloaded.

Remember that time is MONEY and affects the overall economy and existing home values! Every time a bank sell a property at auction for a reduced market price, or takes the property back and it sits on the market for months, finally being sold at 50% less than 2005 “value” everyone else property “value” declines! THESE ARE COMPS!

In many CA counties, as well as in other states and counties REO sales account for up to 40% of sales! These record and ARE COMPS!

Considering with the impending ALT-A as well as option ARM and PRIME melt down, with a magnitude far greater than the sub prime melt down,
we are looking at a very bad situation overall through at least 2011.

The banks need to cut there losses on the front end as fast as possible and do as many workouts as possible, because the back end after foreclosure is more costly to everyone, including toy and I.

Comments??

The biggest problem with owners facing foreclosure is panic, denial and procrastination. The lenders have failed miserably with getting up to speed with “workouts” and offering solutions. They are simply over burdened and under staffed.

Most states have legislature as well as voluntary outreach programs with the goal of getting to the defaulting home owner as quickly as possible to see if there can be a resolution. Still, the programs are underfunded and not as far reaching as the need to be.

Everyone loosed in foreclosure and we know that! The Banks (Wall St. Investors) Hedge Funds etc. loose up to 50% of the original loan balance in many cases, so it is in everyones best interest to look at all possible “workout” solutions.

N.Y. is suggesting that a “settlement conference” be used as is in ALL “other” Law Suits to help expedite a workout if possible. In my opinion this will speed up the process and perhaps result in some workouts that otherwise would have not even been explored.