I now understand

[Capvin]

Mom...I have been doing this for many years and, for the most part, people involved in litagation are moved by economics with a bit of common sense thrown in. Not these major banks and their law firms that are called "foreclosure mills." It is hard for many of us to figure out the sense of some of their actions because, like your example, it makes no sense. Of course any business can write off their losses against their profits but anyone will tell you that every business wants more profits and would be happy to never take a loss. I seriously think that it just boils down to the banks are so big that there really is not anyone that can look at an individual situation and make an intellegent decision. They are guided by hard and fast rules that do not always apply to a specific case and that is why the outcomes sometimes seem very foolish.

 

[mstricer]

I suspect there is some sort of benefit for the banks to be able to foreclose and write off a loss; otherwise the whole scenario makes no sense. The logical thing is to work with people to come up with a payment plan and keep people in their homes and keep the money coming in. The house on my street that has been empty was probably worth $215,000 -$250,000 when it was occupied. After sitting empty for more than two years, with the pool uncovered for half that time, yard dying, fence rotting, etc, it was listed at $179,000, and I don't think anyone bid that much because it needs $25,000-$50,000 in repairs and updates. And that is two years of interest payments that the bank lost.

I don't understand how it all works...

they don't want to do a payment plan. I tried that to. They want your house. That is why they tell you to fill out the hardship stuff, it backs you up more. The most important thing to do is to try stay under 60 days, they consider that in good standing.

 

[mulewagon]

If they foreclose on thousands and thousands of properties, they likely make plenty of money on most of them. As for the ones that don't sell, well, land isn't being made any more, and a corporation can hold onto it for decades until the price goes up just for the land.

 

[Capvin]

If they foreclose on thousands and thousands of properties, they likely make plenty of money on most of them. As for the ones that don't sell, well, land isn't being made any more, and a corporation can hold onto it for decades until the price goes up just for the land.

Sorry, I just dont think that opinion is correct in any respect. I am quite certain that taking all of the foreclosures over the last 5 to 7 years the end result has been a big lose to the banks and to the economy of this country.

 

[EweSheep]

Don, where were you when I needed you at the time when my local bank decided not to work with me? They didn't want to work with me at all even we attempted to make some payments, both on house and truck. So I had to file bankruptcy eight years ago. It sucks but they lost money on a house that was completely redone, gained $5,000 but they had to lose it all because of their refusal to work with us. They sold the house $15,000 LESS at the sheriff's auction.

 

[Capvin]

Ewesheep's story, unfortunately, is and has been typical. It really makes no sense. You also bring up a good point about filing bankruptcy as a protective measure against these tactics. Please let everyone be assured that in today's world filing for bankrutcy protection is no shame and, in many cases, is the right thing to do. It has the effect of stopping all proceedings and the bankruptcy judge has the power to force your creditors to listen to your proposals and also has the power to force them to go along with you.

 

[cassie]

If they foreclose on thousands and thousands of properties, they likely make plenty of money on most of them. As for the ones that don't sell, well, land isn't being made any more, and a corporation can hold onto it for decades until the price goes up just for the land.

How? Where? In my area alone, there were many many properties of all sorts foreclosed upon. Based upon my converstations with exit realtors, I would bet my first born son (if I had one) that the banks lost money on every single one of those properties. The only question is how much they lost. BTW, the exit realtors made money on the deal. In all probability, they were the only ones. Assuming the bank decides to hold a property until the price goes up at some undetermined time in the future, when the banks hold houses they don't maintain them. The house deteriorates to the point it may become uninhabitable. Even in a housing boom the bank is not going to recoup their money.

As I stated before, in my case there was $250,000 owed on my property. The bank eventually sold it for $51,000 which is a net loss of just under $200,000 not including the expense of the actual foreclosure. My case was not at all atypical. Now even with tax write offs, where is the profit in that? Please explain it to me. Anyone?

.

 

[Capvin]

Once again...there is no profit motive. The problem is we do not know what their motives are except plain stubborn stupity. Also, banks are not in the real estate business and would not even be permitted to hold onto the properties long term as an investment.

 

[Chick_In_The_Burbs]

What I don't get is why there seems to be another uptick in foreclosures. The house next door finally sells (2 years after it was foreclosed on) and two others are foreclosed on in the last six months within two blocks of me. I keep seeing the signs go up and the yards dying but I rarely see foreclosures sell, at least in my area. Heck, it took the bank a year just to list the house next door!

 

[newfoundland]

What I would like to know is what happens to these families that find themselves homeless? Does anyone know or indeed care? The archbishop of Lincoln has announced that to get a flavour of what it truly means to be homeless, he will spend a night out under the stars at Christmas. He will of course have an extreme force sleeping bag and a flask of hot coffee. I'm sorry Your Grace, but in what way will this come close to the experiences of those who really are on the streets this winter. I've an idea, open up the churches to the homeless, cover the floors with camp beds and open up kitchens to feed them. If you need money to fund this, just dip into the massive wealth of the Church of England. Our Saviour would have considered the vast wealth of the church, in the face of the destitution of it's children, an obscenity!