We’ve gotten the feeling that banks aren’t pursuing defaulters much after hearing anecdotal evidence about homeowners who aren’t getting calls from their banks and servicers, even though they’ve been behind in their payments for over a year.
Here is supporting evidence, a review of the 7,000 clients at youwalkaway.com, seen at mish’s site:
http://globaleconomicanalysis.blogspot.com/2012/09/here-are-some-interesting-stats.html
Once the California Homeowners Bill of Rights takes effect on January 1st, banks won’t be able to file a foreclosure notice until all loan-mod attempts have been exhausted – which would give them permission to let everyone ride.
That confirms with what we are seeing on some of the short sales we are doing Jim, no NODs even when they are severely deliquent. I guess if you don’t file foreclosure notices you can make the numbers appear like they are improving when quite the opposite is true.
So weird. I don’t know when my neighbor stopped paying their mortgage but they bought in December 2006 (too late), got a notice of default recorded 4/1/2009, notice of trustee sale 7/21/09, and the house sold on the courthouse steps 11/2/09.
That’s in California’s default central (Sac. County). Seems to have worked as designed, what causes all of these other delays, did people just manage to hang on long enough for the government to step in and “save” them from the big bad banks?
IIRC, even Casey Serin’s parents with their various phoney bankruptcy shenanigans only managed to postpone their foreclosure for ~1 year.
The PMI is nearly $500/month thanks to all the deadbeats.
2) interesting –
I’ve heard that if you have equity in the house and you default, foreclosure happens quickly.
If you are upside down, it drags.
Maybe your friends put alot down ?