Judge Blasts Bank's Foreclosure Conduct and Cancels Mortgage

[Avatard]

Originally Posted by Smittie61984

So they are in court because she didn't pay her loan and the bank is in trouble for wanting the money they loaned out?

As usual, reading comprehension fail.

[Smittie61984]

Originally Posted by Avatard

As usual, reading comprehension fail.

Hey Einstein did you read this part???

The judge observed that a modification of the mortgage would have assured the IndyMac "a regular income stream, albeit with a reduced rate of interest and without sustaining a loss of several hundred thousand dollars."

Reduced rate of interest which means a loss of money for the bank. Perhaps if the bank assumed they would give out a loan with a smaller percentage rate they wouldn't have given the loan in the first place. She agreed to a percentage and should have paid it. If she can't then it should be up to the bank (and not some snooty judge) on wether they want to accept less money.

I don't see the "Win-Win" there. If you loaned a buddy $100 and they said they were only going to give you $90 back, then you'd be pissed off as hell.

[karl_1052]

Originally Posted by Smittie61984

Hey Einstein did you read this part???


Reduced rate of interest which means a loss of money for the bank. Perhaps if the bank assumed they would give out a loan with a smaller percentage rate they wouldn't have given the loan in the first place. She agreed to a percentage and should have paid it. If she can't then it should be up to the bank (and not some snooty judge) on wether they want to accept less money.

I don't see the "Win-Win" there. If you loaned a buddy $100 and they said they were only going to give you $90 back, then you'd be pissed off as hell.

$90 is better than none.
The bank could take a reduced rate for a longer term which would equal the same money, but allow the homeowner to continue to make payments.

If you lost your job(I know, not possible in this booming economy), would you not try to make arragements with the bank to keep your house?
(No, you sound like an internet tough guy, who will turn into Chuck Norris and roundhouse kick money into existence to pay your mortgage)

What about the part where the bank tacked $200,000 onto the loan? What are your comments about that part?

[tached1000rr]

Originally Posted by Smittie61984

Hey Einstein did you read this part???


Reduced rate of interest which means a loss of money for the bank. Perhaps if the bank assumed they would give out a loan with a smaller percentage rate they wouldn't have given the loan in the first place. She agreed to a percentage and should have paid it. If she can't then it should be up to the bank (and not some snooty judge) on wether they want to accept less money.

I don't see the "Win-Win" there. If you loaned a buddy $100 and they said they were only going to give you $90 back, then you'd be pissed off as hell.

The bank would have made their money from interest even at a reduced interest rate, anything above 0% has to yield money for the bank, hmnn I borrow 200,000 and over 30 yrs my payout to the mortage co. ends up being 325,000, at whatever interest had been established, the bank essentially had 125,000 in that scenario cushioned so even if they reduce the interest a point or few, they are still gonna get their money in the end and then some.

[Apoc]

Originally Posted by Smittie61984

I don't see the "Win-Win" there. If you loaned a buddy $100 and they said they were only going to give you $90 back, then you'd be pissed off as hell.

No, if I loaned a buddy 100, and he said he could only pay back 90, i'd probably ask him to keep it as he probably needs that 90 dollars more than the guy who could afford to lend it, seeing he couldnt pay back the full bill. Ive got a few friends that I would GIVE 100$ in a heartbeat if they needed it. I know others whom I wouldnt piss in their mouth if they were dying of thirst.

Its far and away not the same situation. Nice try. Fail. Dont compare law, banking and global economics to a loan between friends.

[pauldun170]

Originally Posted by Smittie61984

Hey Einstein did you read this part???


Reduced rate of interest which means a loss of money for the bank. Perhaps if the bank assumed they would give out a loan with a smaller percentage rate they wouldn't have given the loan in the first place. She agreed to a percentage and should have paid it. If she can't then it should be up to the bank (and not some snooty judge) on wether they want to accept less money.

I don't see the "Win-Win" there. If you loaned a buddy $100 and they said they were only going to give you $90 back, then you'd be pissed off as hell.

Foreclosure is a very costly process.
The bank is responsible for legal cost associated with the foreclosure.
They become responsible for all taxes owed once the foreclosure process begins.
They lose revenue from the halt of principle and interest payments
Once they do get the deed to the house they have to deal with the effect a foreclosed home has on market value, meaning one foreclosed home on the block automatically brings the value of surrounding homes down as well as the market value of the home.
they have to pay for upkeep and bringing the house up to a sell-able condition.
They have to pay whatever real estates broker cost to get the house on the market.
As a reminder...they are not receiving any money for the property during this period. From the first missed payment to sale of the home can take over a year.

Once it is accepted that the homeowner will not be able to catch up but will be able to pay under new terms it is a win win situation to work with the homeowner.

The only good that comes out of a foreclosure is the deal the next buyer gets. Everyone else losses big time. The homeowner is out of the home and loses any equity in the home, neighbors lose as there equity takes a hit from the foreclosed house and the bank can lose anywhere from 40 to 80cents on the dollar.

[sherri_chickie]

Good for the judge. Banks get bailed out all the time and do nothing to help the people who really need help, who are going to lose everything. Maybe this will send a message that they should go into mediation with an open mind and truly mean to come to a conclusion that helps everyone.

I don't understand why banks even want to foreclose if they can help it, it's not like they are going to have an easy time reselling the property right now.

[the chi]

Ftr, even with the astronomical Rates if people unable to pay their mortgages, and with sufficient efforts made to remedy the issue, most banks are still refusing to assist the homeowners and are the main contributing force behind the housing foreclosure issue.

[RACER X]

so sigining a 30yr loan really doesn't mean you have to honor..........IC

[Papa_Complex]

Originally Posted by RACER X

so sigining a 30yr loan really doesn't mean you have to honor..........IC

That's about as reasonable a comment as, "So killing someone means that you don't have to go to jail."