California Imposes 90-Day Foreclosure Moratorium

[StageLeft]

Link

Why do today what you can put off until tomorrow?

The law is expected to make lenders try harder to keep borrowers in their homes.

Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

Not that it's really any business of the government to make that decision for them, since the law already has it clearly stated what conditions need to be met for a lender to start foreclosing.

All so very silly.

I bet you there are people in some parts of the country that have been living in nice houses rent/payment free for over a year as foreclosure processes have dragged out.

 

[Slew Foot]

Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

 

[Vette73]

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

 

[StageLeft]

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

 

[Vette73]

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

 

[Genx87]

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

 

[Vic]

It only applies to lenders and servicers who do not have an FDIC-approved loan workout/modification program.

From the assemblyman's own website:
"Allows lenders to avoid the moratorium if they have a comprehensive loan modification program based, in part, on criteria set forth by the Federal Deposit Insurance Corporation. Loans may be modified several ways, including interest rate reductions, extension of the loan term, or principal reduction."

As most lenders and servicers at this time already do have a "comprehensive loan modification program," this is effectively a do-nothing feel-good law.

 

[Vic]

Originally posted by: Genx87
These people are essentially living in a dwelling rent free.

You have no idea.

 

[StageLeft]

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

And these variables come into play when a lender decides to foreclose or not. At this point it's their house, CA has essentially told them they cannot have it, despite it legally being theirs.

 

[PingSpike]

They should just impose a 90-year moratorium instead. Boom! Mortgage crisis solved. You're welcome.

 

[Jaskalas]

Originally posted by: PingSpike
They should just impose a 90-year moratorium instead. Boom! Mortgage crisis solved. You're welcome.

3 year would work.

 

[soccerballtux]

Originally posted by: Skoorb
Link

Why do today what you can put off until tomorrow?

The law is expected to make lenders try harder to keep borrowers in their homes.

Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

Not that it's really any business of the government to make that decision for them, since the law already has it clearly stated what conditions need to be met for a lender to start foreclosing.

All so very silly.

I bet you there are people in some parts of the country that have been living in nice houses rent/payment free for over a year as foreclosure processes have dragged out.

Loan modification is a farce and doesn't help; over 60% default again within the first 6 months.
40% default on the first month.

Yet another useless government policy brought to you by democrats.

 

[JS80]

Originally posted by: Genx87

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

My coworker who makes well into six figures is underwater on her condo. She called Chase to try to mod the loan and they basically said no unless you are back on payments. So she stopped paying her mortgage and plans on living there for free for 12 months and save $3k/month.

 

[BoberFett]

Originally posted by: PingSpike
They should just impose a 90-year moratorium instead. Boom! Mortgage crisis solved. You're welcome.

Good idea. Keep deadbeats in their homes and eliminate any possibility for new mortgages in one fell swoop.

 

[brandonbull]

Originally posted by: JS80

Originally posted by: Genx87

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

My coworker who makes well into six figures is underwater on her condo. She called Chase to try to mod the loan and they basically said no unless you are back on payments. So she stopped paying her mortgage and plans on living there for free for 12 months and save $3k/month.

That's what my lender told me. Unless I'm behind in payments or can come up with ~$75k to cover the amount we are underwater plus the 20% in order to refi, they got nothing for me. Nice incentive to keep doing the correct thing.

 

[piasabird]

This is an example of how under O'Bamma we will have change and compassion for home owners. So much for compassionate bankers with big fat bailouts.

On the other hand this gives occupants 90 days to sell all the applicances, tear out all the cabinets and rip up the hard wood flooring and the marble and granite counter-tops.

 

[Mxylplyx]

Originally posted by: Skoorb
Link

Why do today what you can put off until tomorrow?

The law is expected to make lenders try harder to keep borrowers in their homes.

Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

Not that it's really any business of the government to make that decision for them, since the law already has it clearly stated what conditions need to be met for a lender to start foreclosing.

All so very silly.

I bet you there are people in some parts of the country that have been living in nice houses rent/payment free for over a year as foreclosure processes have dragged out.

Guy across the street from me hasnt paid the mortgage on his 200K house since March of last year. He is supposedly just now about to get evicted.

 

[JSt0rm]

well what did the banks think was going to happen with a bunch of people with no collateral in the homes. The banks just became the biggest landlords in the country renting to anyone with a 650 credit score.

 

[StageLeft]

Originally posted by: JS80

Originally posted by: Genx87

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

My coworker who makes well into six figures is underwater on her condo. She called Chase to try to mod the loan and they basically said no unless you are back on payments. So she stopped paying her mortgage and plans on living there for free for 12 months and save $3k/month.

So she's grossing over $6k/month and is willing to annihilate her credit over a $3k/month payment?

 

[JSt0rm]

Originally posted by: Skoorb

Originally posted by: JS80

Originally posted by: Genx87

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

My coworker who makes well into six figures is underwater on her condo. She called Chase to try to mod the loan and they basically said no unless you are back on payments. So she stopped paying her mortgage and plans on living there for free for 12 months and save $3k/month.

So she's grossing over $6k/month and is willing to annihilate her credit over a $3k/month payment?

it would be tempting. Move into a 1500 a month apartment for 7 years putting the 1500 a month in savings and after you come out in 7 years buy a house again with a huge down payment

 

[sactoking]

Originally posted by: Skoorb
So she's grossing over $6k/month and is willing to annihilate her credit over a $3k/month payment?

You'd be surprised how little a foreclosure will affect your credit in anything but the very short term. Yes, as you're headed to foreclosure and immediately afterward you WILL drop <600 due to the late pays and foreclosure itself. With wise use of remaining credit, I've seen people >650 (and some >720) within 2 years.

 

[StageLeft]

Originally posted by: JSt0rm01

Originally posted by: Skoorb

Originally posted by: JS80

Originally posted by: Genx87

Originally posted by: Marlin1975

Originally posted by: Skoorb

Originally posted by: Marlin1975

Originally posted by: Slew Foot
Yawn, the banks will just sit on their hands for 90 days then throw the book at them. The dipshits will live free, and the rest of us will pay higher interest rates to make up the lost profit.

What profit do you make on a home they is not being paid for.

You lose less if you can seize it from the buyer and put it on the market now rather than waiting three more months of a non serviced loan sitting on your books and then seizing and selling it.

Only if it can be sold in those 90days. If not then the person living there keeps paying for heat/AC and keeping it up. So its not cut and dry like you make it to be. Many homes rot away waiting and/or vandales tear them up.

A lot of foreclosed homes get damaged and run down. Another 90 days gives the previous owner that much more time to let the property fall into decay or outright damage it.

I dont know the process in California but I suspect it is close to MN. The process basically takes 12 months from the first missed payment to eviction. Now they are extending it to 15 months? These people are essentially living in a dwelling rent free.

My coworker who makes well into six figures is underwater on her condo. She called Chase to try to mod the loan and they basically said no unless you are back on payments. So she stopped paying her mortgage and plans on living there for free for 12 months and save $3k/month.

So she's grossing over $6k/month and is willing to annihilate her credit over a $3k/month payment?

it would be tempting. Move into a 1500 a month apartment for 7 years putting the 1500 a month in savings and after you come out in 7 years buy a house again with a huge down payment

If it really dropped by 50%, yeah, I agree tempting and not necessarily the wrong decision.

 

[JS80]

Yes she is. Condo is underwater by $150k I think. And I think she is planning on moving in to her bf's house that he owns in a year, and who knows maybe they will get married. In her specific situation it is not worth paying the mortgage.

 

[Patranus]

Whats next, a 90-day moratorium on credit card bills?

The simple fact of the matter is that the majority of people should not have been in homes in the first place and did not budget for their adjustable rate mortgage to reset at a higher rate.

The government has no business intervening in private contracts.

 

[JSt0rm]

Originally posted by: Skoorb
If it really dropped by 50%, yeah, I agree tempting and not necessarily the wrong decision.

If there is one thing I've learned about capitalism its that nobody should be faulted for taking care of number 1.