WHAT DO YOU THINK WOULD HAPPEN if halted FORECLOSURES NEVER came back on the market? Courts are considering forcing the banks to do modifications.

Asked by Jake Benson, Austin Hills, Austin, TX Thu Oct 14, 2010

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Zmbrennan, , San Jose, CA
Fri Oct 15, 2010
The real McGuffin here is that this "fraudulent" documents in some cases show the forclosing entity does not have clear title.

Courts may force banks to reduce principle and give homeowners back the home at current market.

This would remove 1/3 of the inventory on the market.

I think this would make the market recover.
1 vote
Deborah Madey, Agent, Brick, NJ
Thu Oct 14, 2010
Not all homeowners are capable of qualifying for a loan mod. While I believe the requirements for a loan mod need to be seriously overhauled, there are some that simply will not work out. There are high stats about the failure of loan mods....people falling behind again. I think the banks provided 'crappy life jackets" to drowning swimmers. Of course, they took the life jacket that had a hole in it over nothing, but it was a bad offer in the first place. If the banks had realistic workouts, many properties would not foreclose and would not come on the market. But, some situations are such that foreclosure or deed in lieu is the only answer.

The expectation of "realistic" workouts should have been tied to the bailout money. Shame on the government for handing out billions without proper oversight.
3 votes
Nancy Doyle, Agent, Cape Coral, FL
Thu Oct 14, 2010
I agree totally with Deborah. If the banks were forced to work with home owners that realistically can stay in their home our market would be turning around. It almost seems as if they want the homes back in some cases. Not working with short sales or loan mods, its just crazy.
Web Reference:  http://www.nancydrealtor.net
1 vote
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