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Posted by on Mar 6, 2012 in Foreclosures/REOs | 7 comments | Print Print

Free-Rent Bonanza

CR noted here this morning that national foreclosure filings are increasing, making it 6.08 million loans delinquent or in foreclosure in January.

Sure enough, the San Diego County foreclosure filings are on the rise too:

San Diego County Filings

You can’t blame the HARP 2.0 refinance program, because it requires that borrowers have been current over the last six months.

It’s just more people pushing the banks to do something to end their free-rent package, otherwise they’ll ride forever. See this story about people who haven’t paid for five years!

7 Comments

  1. From the linked story:

    The couple called their new residence “God’s house” because, as Keith Ritter put it, “that’s the only way we could have been approved for a loan.”

    LOL, classic.

  2. “people who haven’t paid for five years!”

    -snark summary on-

    “According to federal prosecutors and court records, Ritter bought real estate and then put the properties in the names of family members. When he fell behind on mortgage payments, he filed for bankruptcy protection in his relatives’ names in various jurisdictions to stop foreclosure proceedings. Then he tried to get the bankruptcy filings dismissed without telling the mortgage lenders. He pleaded guilty in 2000 to bankruptcy fraud and was sentenced to 15 months in federal prison in Petersburg, Va., where he wrote the first of three books about his deepening faith, “Life From the Inside.””

    That was 12 years ago. Less than 5 years later –

    “By the time his probation ended in 2004, the housing boom was underway.”

    Buying, flipping, driving matching benz sedans, international travel ensues.

    now …

    “It was never our intention to get here and never make a mortgage payment,” Keith Ritter said. “We don’t believe in living for free.”

    -snark summary off-

    signed – BS

  3. For the borrowers, I think the triage phase of the crisis is ending. A lot of the fatal cases have made their way through the system. There is forbearance and refinance help for the folks that were unemployed temporarily and/or are underwater. The banks, GSE’s and the government are down to figuring out how to deal with the moderately to severely wounded that possibly would survive if treated. Starting the foreclosure process helps with making these decisions.

  4. Repeat foreclosures are on the rise. The can that was kicked down the road is once again approaching our feet again. Should we kick it again or step on it and crush it ?

    http://feedproxy.google.com/~r/Housingwire/~3/zsSgGbVlLjk/repeat-foreclosures-hit-all-time-high-january

    Not saying there is a Tsunami coming. Not saying there won’t be a Spring bounce, but there is some downward pressure out there.

    The severely wounded should have been taken off life support sooner to save time and money.

  5. What do you mean by “downward pressure”?

    More foreclosures = more sales = better comps = stable to rising prices.

    The media has us brain-washed to think more foreclosures means lower prices. Don’t assume anything.

  6. The market determines price and the market has spoken. There are multiple buyers for correctly priced properties in almost every market. Inventory is dropping dramatically everywhere that was oversupplied. Interest rates are low, affordability is high. You could triple the number of fopreclosures in the strongest markets and absorb every one of them at current or higher prices.

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