Marc's Mortgage Matter's

"Clearly, no one should be foreclosed on improperly - even if it's a technicality.  We should support the calls by some politicians for a national foreclosure moratorium by upping the ante and proposing a national "payment moratorium".  That's right - as long as some Americans are being given the enormous benefit of not having to make a housing payment - all Americans should share in that benefit. So, starting next month - no more housing payments.  It's time the entire country receive the "same treatment the banks got."  Enough is enough. To heck with the banks.  Or, maybe we can take it one more step - let's simply forgive all housing debt in America.  Fair is fair.  Rather than criticize the person who hasn't made a housing payment in two years while his neighbors dutifully pay each month - let's let those neighbors off the hook too...  Wait.  Better idea.  How about a national moratorium on tax payments?  Now we're cooking with gas.  I bet we can find some loopholes in the way the government administers taxes."

So wrote someone last week. Yes, that is "tongue in cheek", but many in the business have frustrations to vent. A spokesman said that President Obama supports an investigation by state attorneys general into troubles with home foreclosures. However, the president is opposed to a nationwide suspension of foreclosures because of possible "unintended consequences" that could hurt the housing market. Senator Christopher Dodd said a nationwide moratorium would do harm to the economy. GMAC Mortgage announced hiring "several leading legal and accounting firms to conduct independent reviews of its foreclosure procedures in each of the 50 states." "In addition to the nationwide measures, the review and remediation activity related to cases involving judicial affidavits in the 23 states continues and has been underway for approximately two months.  As each of those files is reviewed, and remediated when needed, the foreclosure process resumes.  GMAC Mortgage has found no evidence to date of any inappropriate foreclosures."

Life is full of unintended consequences, and logistical nightmares - just ask the Chilean miners. It seems that "tensions rose as wives and mistresses of the miners trapped deep within the San Jose mine make rival claims for compensation." It seems that in most cases, they didn't know about each other. At stake are welfare packages issued to the families of the trapped miners as well as future compensation claims. According to one story, "Some women turned up at the camp to discover that their partners already had a wife and children who they knew nothing about." "It's a logistical nightmare..." said one spokesperson. (True!)

Life is full of unintended consequences, and logistical nightmares - just ask foreclosure departments. It seems that "tensions rose as attorneys and modification experts of the borrowers trapped in their underwater mortgage make rival claims for compensation." It seems that in most cases, they didn't know about each other. At stake are interest and fees paid by the borrowers as well as future compensation claims. According to one story, "Some attorneys turned up at the borrower's doorstep to discover that their clients already had a mod expert who they knew nothing about." "It's a logistical nightmare..." said one spokesperson. (Maybe true!)

Anyone looking for a good article on foreclosures can read NYT

Mortgage rates are still at record lows, and without clarity on the direction of the economy, seem likely to continue this sideways drift. Perhaps the economy will show more firmness in the coming weeks, and perhaps the election will provide greater clarity on the direction of regulation, taxes and economic policy. Here's hoping so, but until them, it is more of the same for rates next week.

Cheap interest rates mean little if no one wants to (or can qualify to) borrow. However, you might be surprised. Many that think they qualify really do not, while many that thought they don't, actually do. Heck, if you even thought of a mortgage it's worth giving me a call if we have not spoken recently.

A little old lady answered a knock on the door one day, and was confronted by a well-dressed young man carrying a vacuum cleaner.
"Good  morning," said the young man. "If I could take a couple minutes of your time, I would like to demonstrate the very latest in high-powered vacuum cleaners."

"Go away!" cried the old lady. ''I'm broke and haven't got any money!'' and she proceeded to close the door.
Quick as a flash, the young man wedged his foot in the door and pushed it wide open.

''Don't be too hasty!'' he said.  ''Not until you have at least seen my demonstration!''
And with that, he emptied a bucket of horse manure onto her hallway carpet.

''Now, if this vacuum cleaner does not remove all traces of this horse manure from your carpet, Madam, I will personally eat the remainder.''
The old lady stepped back and said, ''Well you just stay right there while l get you a fork, 'cause they cut off my electricity this morning."