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-   -   foreclosure moratorium (http://www.early-retirement.org/forums/f28/foreclosure-moratorium-39763.html)

lazygood4nothinbum 10-14-2008 10:14 PM

foreclosure moratorium
 
miami-dade county is first starting to consider a 4-month moratorium on existing foreclosures. there would also be a cool-off period before filing a foreclosure where cases would be sent first to mediation. currently about 36 homeowners are being evicted daily.

looks like fort myers, ground zero of the bubble burst, is also considering similar action. the miami decision will be ruled on by a judge in early november. some speculate this could spread state-wide.

i absolutely don't know what to make of this. perhaps someone can enlighten me.

OAG 10-15-2008 05:00 AM

South Florida (another world)? Stick it to those awful RE Investors and mortgage owners. They just want their money, what is wrong with them? Maybe we are headed towards a RE "give away" program to dwarf all the recent "bail outs". Cool off period what a crock - TMK foreclosures occur AFTER the payments have stopped for MORE THAN A MONTH OR SO. It is not a surprise to anyone except the totally ignorant.

al_bundy 10-15-2008 07:10 AM

most banks have different mortgage policies for each state. lets see how easy it will be to get a mortgage in florida after this

tryan 10-15-2008 09:19 AM

We're definatly in new territory. Wait until Obama/Biden empower judges to void the mortgage terms all together .... a lovely development to the business world.

Who the right mind would EVER loan money on these terms?

brewer12345 10-15-2008 09:38 AM

Doesn't strike me as a partiularly smart idea, considering what it will likely do to future mortgage lending in "America's Wang" (good luck if you don't qualify for a Freddie/Fannie mortgage) and what it will accomplish for most of the defaulting borrowers (little if anything). It also will delay the necessary clearing out of all the defaulted loans that need to get resolved before the market down there can get moving again.

But why should we be surprised? This is the same state that has made it quite possible for the entire state to go bust if there is another really bad hurricane, and they did that solely because it was politically expedient.

Uncle Drew 10-15-2008 09:47 AM

Quote:

Originally Posted by OAG (Post 732475)
Cool off period what a crock - TMK foreclosures occur AFTER the payments have stopped for MORE THAN A MONTH OR SO. It is not a surprise to anyone except the totally ignorant.


The foreclosure process can take three months to kick off. Then add on another 60 to 90 days to process (with the current volume). Then, here in CA, SB1137 will increase the number of hoops the lender has to jump through (READ: length of time it takes to complete the process).

Whether you believe this mortgage situation is the bankers' fault or not, the lenders will be eating a lot of costs as they try to get the payments to start occurring again. Or they may get a property back which may or may not be worth what they had invested. Fun times to be a lender!

BunsGettingFirm 10-15-2008 10:08 AM

Quote:

Originally Posted by lazygood4nothinbum (Post 732447)
miami-dade county is first starting to consider a 4-month moratorium on existing foreclosures. there would also be a cool-off period before filing a foreclosure where cases would be sent first to mediation. currently about 36 homeowners are being evicted daily.

looks like fort myers, ground zero of the bubble burst, is also considering similar action. the miami decision will be ruled on by a judge in early november. some speculate this could spread state-wide.

i absolutely don't know what to make of this. perhaps someone can enlighten me.

Maybe it will allow the banks to work through foreclosures and REOs already in the pipeline. I made 3 bids for condos in Tampa, and all of them fell through because the banks' employees were just too swamped to make a reasonable effort.

OAG 10-15-2008 10:46 AM

Quote:

Originally Posted by Uncle Drew (Post 732539)
The foreclosure process can take three months to kick off. Then add on another 60 to 90 days to process (with the current volume). Then, here in CA, SB1137 will increase the number of hoops the lender has to jump through (READ: length of time it takes to complete the process).

Whether you believe this mortgage situation is the bankers' fault or not, the lenders will be eating a lot of costs as they try to get the payments to start occurring again. Or they may get a property back which may or may not be worth what they had invested. Fun times to be a lender!

Yeah, I was trying to be "nice". I guess there is "safety in numbers".

Bimmerbill 10-15-2008 11:00 AM

I think its total BS. If you bought a house you can't pay for, it should be taken back.

Uncle Drew 10-15-2008 11:03 AM

Quote:

Originally Posted by Bimmerbill (Post 732588)
I think its total BS. If you bought a house you can't pay for, it should be taken back.

Unfortunately, the politicians don't agree with you...and never will.

lazygood4nothinbum 10-15-2008 11:07 AM

i suspect this might be the thinking:
Quote:

Originally Posted by BunsGettingFirm (Post 732557)
Maybe it will allow the banks to work through foreclosures and REOs already in the pipeline. I made 3 bids for condos in Tampa, and all of them fell through because the banks' employees were just too swamped to make a reasonable effort.

but this is my fear:
Quote:

Originally Posted by brewer12345 (Post 732530)
It also will delay the necessary clearing out of all the defaulted loans that need to get resolved before the market down there can get moving again.

2nd week of october, like clockwork the weather here has finally broken, summer turns off as quickly as the real estate market. i went for a walk late last night in the full moon, a nice breeze, moderate temperature, humidity down to about 57% (low for this time of year), the air couldn't have been more clear. the first walk since summer started that didn't end with a sweaty t-shirt.

what made my walk a bit surreal was that among the more than 300 houses i passed, i found only 6 with "for sale" signs. i happen to be in a fairly stable neighborhood, an oasis in the middle of calamity. still, we did have our fair shair of foreclosures.

when i got back home i went onto realtytrac.com and checked out their disaster map. sure enough, there are just three bank owned properties here and a scattering of preforeclosures. i know of a few that had sold for about 40% off their high. my two neighbors across the street from me sold their nonforeclosed homes similarly. regardless, we sold our foreclosures already. the owners & lenders both took a bath and moved on.

i'll wait it out longer but when i came home from my walk i almost had the feeling that i could put my house up for sale now as the sign would not be lost in a sea of signs that would likely still be there were a moratorium to delay the process. i'm not against moratoriums especially in times like these. but if my intention was to clean up a system, i'd shut down construction of new units, which are still being built before i'd stop the sale of existing.

to see the bottom of a river, better to dam upstream and pump out the water on this side, than to dam the river downstream and let water build behind it.

lazygood4nothinbum 10-15-2008 12:55 PM

just off phone with realtor in the middle of his own meltdown. his mother costs him $50k/year, insisting on her "independence". he regrets having spent so much to send four kids through college. he's lost 40% to market crash (i suspected as much because i recalled him bragging about amazing returns earlier this year while i was playing it safe).

he blames real estate woes on banks selling houses at 50 cents on the dollar and insists the government has to put a stop to it. i wanted to ask him about the moratorium proposal but already could figure out his response and by then he was getting a little loud and manic so i cut the conversation short.

i'm further convinced that my plan to ride out this storm is my best course of action. early retirement is going to be coming a little later the next time around.

by the way, my personal capitulation is not finding bottom. it is in consideration & suspicion that this could get twice as bad.


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