Untapped and Under-tapped Foreclosure Prevention Strategies: “Let a Hundred Flowers Bloom”
Rayman Mathoda - December 23, 2008
There is widespread agreement among key national political, economic and housing stakeholders (the government and regulators, consumers and Banks among others) on the need to help prevent foreclosures, keep as many people as possible in their homes, and “clear the housing market” of troubled assets quickly and fairly. This would help the housing market find a bottom more quickly - which housing market bottom will mark a turning point in our nations’ economic recovery.
There is widespread agreement among key national political, economic and housing stakeholders (the government and regulators, consumers and Banks among others) on the need to help prevent foreclosures, keep as many people as possible in their homes, and “clear the housing market” of troubled assets quickly and fairly. This would help the housing market find a bottom more quickly - which housing market bottom will mark a turning point in our nations’ economic recovery.
In the spirit of Barney Frank’s statement “Let a Hundred Flowers Bloom”, I have put together this foreclosure prevention vision (including feedback and insight from Ron Garber, CEO of Short Sale Plan and Eric Friedman, SVP of Loss MItigation at Indymac Bank).
The housing market and economy are facing problems larger than any individual or organization….and it is in this spirit that I am publicly sharing this vision. I would welcome feedback from anyone who has experience in foreclosure prevention and any of the related strategies/areas.
I will be pursuing some or all of these strategies for Los Angeles and perhaps nationally in my capacity as CEO of HausAngeles, and in partnership with Ron Garber, who has spent the last 2 years developing and refining systematic short sales knowledge, education/training, processes/documentation and infrastructure….believing that they are the preferred alternative to foreclosures for all parties involved.
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Posted by Rayman Mathoda at December 23, 2008 10:29 AM
Comments
1. Posted by
Lily Finch
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on
December 23, 2008 08:21 PM
I have been on both sides of this issues. For many years, before the crisis hit, I was a loan officer and a real estate agent. I am currently a landlord and homeowner who due to cancer treatments and a terrible rental market, (my properties were vacant for over a year) and I got behind. I have been working for nearly a year with the mortgage companies on a modification of my loans as the payments are double what I can get for rent and I haven't had any income (other than rent) for nearly 2 years.
THE MORTGAGE COMPANIES ARE A NIGHTMARE TO WORK WITH! Both companies I have worked with have lost my paperwork 5 different times. They refused short sales at current values because they said that they had insurance on the loans and didn't have to accept less than what was owed. They have insisted that they have never recieved paperwork from me and that I have never spoken to anyone only to have to eat their words when I send them proof of confirmed faxes and conversations with loss mitigation employees....only to after killing myself for months to finalize modification at an affordable rate, they transfer the loan to another servicing company who says they can't authorize any change in interest rate and we have to start all over again!
I write this because something has to be done about the mortgage companies! They are being bailed out even as their incompetance grows. They don't have to change anything! (talk about using the same thinking to try to fix the problem that was used to create the problems! insanity!)Because they are being bailed out, their arrogance and incompetance is only growing! Why would they have to change anything? But there is more!
On one home, I owe 250k. I paid 275k for the house, put 25k down and put another 50k in fencing and landscaping on it. It's in perfect condition. The current appraised value is 210k and they are now insisting that I committ to paying 320k for the house on the modification; 250k plus 79k in late fees, interest etc.!
I am praying that Obama do something about this atrocity and require that the lenders themselves, lower the interest rates to affordable limits, modify to current values as well as waive all the past late interest and fines. Because of their bailout. The homeowner is left to deal with immovable mortgage companies. If something isn't done about this, there are only going to be a whole lot more houses on the market!
2. Posted by
Lily Finch
on
December 23, 2008 08:22 PM
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Recent Comments
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Lily Finch commented on Untapped and Under-tapped Foreclosure Prevention Strategies: “Let a Hundred Flowers Bloom”
I have been on both sides of this issues. For m
-
Lily Finch commented on Untapped and Under-tapped Foreclosure Prevention Strategies: “Let a Hundred Flowers Bloom”
I have been on both sides of this issues. For m
I have been on both sides of this issues. For many years, before the crisis hit, I was a loan officer and a real estate agent. I am currently a landlord and homeowner who due to cancer treatments and a terrible rental market, (my properties were vacant for over a year) and I got behind. I have been working for nearly a year with the mortgage companies on a modification of my loans as the payments are double what I can get for rent and I haven't had any income (other than rent) for nearly 2 years.
THE MORTGAGE COMPANIES ARE A NIGHTMARE TO WORK WITH! Both companies I have worked with have lost my paperwork 5 different times. They refused short sales at current values because they said that they had insurance on the loans and didn't have to accept less than what was owed. They have insisted that they have never recieved paperwork from me and that I have never spoken to anyone only to have to eat their words when I send them proof of confirmed faxes and conversations with loss mitigation employees....only to after killing myself for months to finalize modification at an affordable rate, they transfer the loan to another servicing company who says they can't authorize any change in interest rate and we have to start all over again!
I write this because something has to be done about the mortgage companies! They are being bailed out even as their incompetance grows. They don't have to change anything! (talk about using the same thinking to try to fix the problem that was used to create the problems! insanity!)Because they are being bailed out, their arrogance and incompetance is only growing! Why would they have to change anything? But there is more!
On one home, I owe 250k. I paid 275k for the house, put 25k down and put another 50k in fencing and landscaping on it. It's in perfect condition. The current appraised value is 210k and they are now insisting that I committ to paying 320k for the house on the modification; 250k plus 79k in late fees, interest etc.!
I am praying that Obama do something about this atrocity and require that the lenders themselves, lower the interest rates to affordable limits, modify to current values as well as waive all the past late interest and fines. Because of their bailout. The homeowner is left to deal with immovable mortgage companies. If something isn't done about this, there are only going to be a whole lot more houses on the market!