Comments on: Waiting to catch a wave? Surge of REO listings is unlikely.

By: Julius A. Titus

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By: Samantha Cole

Samantha Cole — Mon, 26 Oct 2009 16:09:54 +0000

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Barney Miller — Mon, 26 Oct 2009 16:07:47 +0000

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By: Sean

Sean — Tue, 20 Oct 2009 08:25:58 +0000

We will have to agree to disagree. I think it is “possible” that we will see a shift in political will and ultimately have a surge of REO listings – but I stick by my title that it is “unlikely”.

By: Gandydancer

Gandydancer — Fri, 16 Oct 2009 12:21:18 +0000

I'm not arguing with your thesis that the government has pressured the banks to delay foreclosures and the degree to which they've done it so far doesn't surprise me. Foreclosures are up 20-odd percent year over year but that isn';t enough to keep up with defaults. HAMP hasn't worked and easier applications won't turn it into a success. And the wing nuts pushing for cram downs aren't going to get them this time either. So neither of the alternatives you offer to foreclosure are going to makea difference. I didn't say it should have blown up already.And the flood indeed may not happen for "months to come". But you didn't write, "Surge of REO listings is unlikely for months". That wouldn't be inconsistent with my prediction that it will be underway by mid-2010. But your actual title is an error in judgement.

By: Sean

Sean — Fri, 16 Oct 2009 07:40:29 +0000

Sure, it SHOULD have blown up long ago – but it hasn’t. And with congress back talking about bankruptcy cram downs and revising HAMP to make it easier to apply and get approved, etc. it won’t anytime soon. This very simple fact is why everyone who is screaming about the coming wave of foreclosures has been wrong, and will continue to be wrong for months to come.

By: David Santucci

David Santucci — Thu, 15 Oct 2009 21:37:02 +0000

My understanding is, if you do a short sale, your mortgage lender is supposed to report this as "Paid - Not As Agreed."

There may have been an error in reporting to the credit bureaus. You should write a letter to all three of the credit bureaus telling them you are officially disputing that item on your credit report. Along with the letter, send a copy of your escrow closing statement from the short sale. Explain in your letter that you did a short sale and there was NO FORECLOSURE.

They have 30 days to wait for an answer from your mortgage lender. I think if you pursue this, you should be able to get your credit report corrected. It will still impact your credit but not as bad as foreclosure -- and your credit reports should NOT say you were foreclosed on if that's not what happened!!

Good luck, I hope you are successful with this.

By: Gandydancer

Gandydancer — Thu, 15 Oct 2009 11:48:24 +0000

Again, not foreclosing on debtors is unsustainable. Tautology: A practice that is unsustainable WILL NOT be sustained. At some point the word gets around that you can stiop paying a difficult mortgage and stay in your house rent-free, with predictable consequences. One of which will then be a surge in REOs. Maybe this won’t happen “anytime soon”, or maybe it will. Nothing in your article or subsequent addresses the LIMITS on the government’s ability to keep a tournequet on the firehose just north of NOD.. But the title, “…Surge of REO listings is unlikely” is simply false. Such a surge is not only likely, it is certain. The only question is whether it will be soon, or not quite so soon.

By: Sean

Sean — Thu, 15 Oct 2009 07:38:00 +0000

It’s the first’s money, they can do with it what they want. Also the second has the right to come down and buy the first at auction so dropping the bid on the first mortgage benefits the second mortgage holder, if they choose to bid on the mortgage to protect their interest. Finally keep in mind that the second will get wiped out by the foreclosure of the first regardless so it doesn’t really matter for them anyway.

By: Sean

Sean — Thu, 15 Oct 2009 07:35:03 +0000

That wave of defaults has been there for a year – yet there continues to be no wave of REOs. I get that there SHOULD be a wave, what I’m trying to explain is that there is so much political pressure, and incentive, on banks not to foreclose, that the wave everyone is expecting is not likely to come anytime soon.