from a professional investors' BBS ...
(snip)""The average number of days from when a borrower stops paying on his/her mortgage to when the bank sends out the first foreclosure notice is 417....And the final foreclosure can take up to a year more. The government's Home Affordable Modification Program, which today the Inspector General for the TARP wrote, "has made little progress in stemming the onslaught".... is simply delaying the inevitable and in some cases kicking the can and the cost down the road for borrowers who will inevitably redefault and for taxpayers who will foot the bill." (Diana Olick Realty Check, CNBC)
Full-stop. So the banks are taking more than two years to roll-over a house...even when they KNOW the homeowner has no intention of paying? Think about that for a minute. The only reason the banks would hold-off that long is if they can't afford to writedown the losses. So, it's all a big accounting charade to keep the public from knowing that they're broke. That's the only logical explanation. Back to the article: "(snip)
also from that article ...
(snip)"Great. So, the same bank that borrows money from the Fed at zero-rates and dings you double-digits on your credit card if you're even a day late, wants to extend a helping hand in your hour of need? Right. There are no good Samaritan banksters, just tight-fisted scalawags who'd squeeze the blood from a turnip if they could figure out how. If B of A is giving folks a break, it's because their backs are against the wall and they have no other choice. It means they're underwater themselves.
And one final note. The Treasury Dept recently reported that the number of "permanent" mortgage mods under the Obama whizzbang program, have more than doubled since its kickoff just a few months ago.
According to economist Dean Baker, "This indicates that a very high percentage of the permanent modifications [ under the HAMP program - sic] are likely to end in default."
But here's the shocker:
"The money that the government spends on a failed modification goes to banks, not homeowners. Typically, the government will have substituted an FHA insured mortgage for the original mortgage issued by a bank. This means that when a redefault takes place, the bank will have received most of the principle back on the loan, with the government [ i.e. future US taxpayers - sic ] incurring the loss on the redefault." (Dean Baker, CEPR, "Money for Failed Modifications Goes to Banks, Not Homeowners")
What does it mean? It means that the Obama mortgage flim-flam is another stealth bailout to shoehorn bankers into government-guaranteed loans so John Q. Public gets saddled with the bill again."(snip)
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