Who's Fault is that Missed Funding? 11.29.10
Today's Poll: Should a loan mod reset on a credit report as a new loan?
Yes
No
Rate this Program
Nuke 'em Until They Glow and Shoot them In the Dark: (December 01, 2010 8:27am)
@NewParadigm DITTO Big time! I was told by a one of the few Realtors whose opinion that I value and she said "You guys all offer the same product. The thing that set's you apart is service." So what B&F say is valid however the home buying public is being steered to a family member that does crappy service just so they can get a Piece of the action. I had one "Realtor" that got all in my stuff last year questioning ever nickel and dime fee on the GFE, even the ones that the title company that SHE selected was charging and saying things like "oh I don't know why you are charging those fees, I've never seen those on a GFE before." After that transaction I fired her Arse on the Spot, Black listed her and reported her to the state Realtor board and state Lending board for being an Unlicensed LO. It's one thing to help the borrower be educated but entirely another to bad mouth you to the borrower when you educate the borrower and are honest.
NewParadigm: (November 30, 2010 11:37am)
Guys, customers certainly want exceptional service but are not willing to pay for it. They do not understand or believe honest, ethical and/or timely service will save them money in the long run. They seem to believe "the other guy" has different products or turn time. Have you ever talked to a Realtor that tells seller the truth about what price they can get for the house? I appreciate you want to motivate us but look at how many people would rather buy inferior products that stop working in a week at 75% of the cost of a product that lasts for a year.
5pence: (November 30, 2010 10:37am)
YES!!!!!! Finally!!! Let's get the dirt on all the TBTF's so people will wake up!! Our own president needs to wake up about the crimes committed!­! You're a hero of the truth Mr Assange and a hero to the down trodden masses. Expose the truth that no one seems willing to accept and then, and only then, can this country heal. As it is we're a festering open wound (corruptio­n) being covered with toxic band-aides (fiat currency) and they're saying recovery is nigh. Bring out the truth and shame those that live for corruption­. The banksters have been given too much power. We bail them out, enititle them again and again and again with our taxpayer monies and in return we get the banks debt !! A sickening twisted logic prevails that only the truth can straighten out.
5pence: (November 30, 2010 10:13am)
All I can say is WOW!! And yes, yes, yes - my prayers have been answered. Assange is a true hero of the truth and does not care about his own personal risk in these matters. I think I love this guy - platonically of course.
5pence: (November 30, 2010 9:54am)
Here's Assange on the material: "You could call it the ecosystem of corruption," he says, refusing to characterize the coming release in more detail. "But it's also all the regular decision making that turns a blind eye to and supports unethical practices: the oversight that's not done, the priorities of executives, how they think they're fulfilling their own self-interest." The added attention couldn't come at a worse time for Bank of America, which is currently embroiled in a federal racketeering lawsuit over its alleged use of "robo-signers" to process foreclosure documents. The bank is also facing battles over mortgage buybacks and new accusations that it routinely mishandled mortgage notes.
5pence: (November 30, 2010 9:52am)
The next target of WikiLeaks may be Bank of America, if comments made last year by the organization's editor-in-chief Julian Assange are any indication. In an October 2009 interview with Computer World , Assange said that Wikileaks had acquired a large cache of information from Bank of America. Here's Assange's 2009 interview: "At the moment, for example, we are sitting on 5GB from Bank of America, one of the executive's hard drives," he said. "Now how do we present that? It's a difficult problem. We could just dump it all into one giant Zip file, but we know for a fact that has limited impact. To have impact, it needs to be easy for people to dive in and search it and get something out of it." In a cover story interview with Forbes, Assange hinted that his organization's next focus will be on uncovering corporate America's secrets. While he declined to identify which bank he'd be targeting, Assange did comment on WikiLeaks' next move, which should come in a matter of weeks.
5pence: (November 30, 2010 9:49am)
WikiLeaks Targeting Bank Of America? Interview Suggests Mega-Bank May Be Next
Oregon CR Appraiser: (November 30, 2010 9:30am)
I too agree some markets still have property WAY overpriced (over 25%). I also know for a fact certain realtors believe they are helping “hold the line” by their overpricing over the past 3-years. There may be some truth to that, but some hurt consumers too! I'm dual licensed as a real estate broker and I see the problem is mostly two-fold. #1) Few realtors have any formal valuation training (coupled with piles of new agents who came online 2005-10). #2) Sellers who don't want to admit they're upside down and ignore agent advice to do a short sale. Overpriced listings are a giant problem I've been complaining about to my local Realtor Assoc since 2007; members who appear to be causing people to lose their homes because of overpriced marketing. How many struggling families have been told their home was worth 25% more than it really is and after more than 1 year marketing at too high a price to even get a low ball offer (chasing declining values)- they eventually lose their home?!!
Oregon CR Appraiser: (November 30, 2010 9:15am)
Hey FLappraiser- I see a few realtors flamed you today. Maybe you didn't even give using the word "greed" a second thought, but be more careful next time, because in today's declining markets it's not usually "greedy" realtors who overprice property, it's mostly "inept" and "untrained" realtors doing it! ;) About appraising, I'm with you bud... I am so tired of AMCs trying to DICTATE how we do our job and I too kick pushy AMCs to the curb!! Some say we're not having any affect on their business by pushing back, except we're seeing more examples all the time, so appraisers- KEEP IT UP!
GODLIKE: (November 30, 2010 9:05am)
I moved to Floriduh to go back to college and went for several months without a job. They have a different economy down there. They'd rather work 2-3 shifts of retired snow birds than one shift of a healthy individual. They can pay the retirees less.
JohnAppraiser: (November 30, 2010 8:49am)
Not to sound harsh but she could lower her standards. I worked for McDonalds and Burger King when I was younger, as well as car repo man, auto detailer, etc. etc. There is always something ou there. I am proud of the fact that I have never gone more than 2 weeks without work from the age of 15 until now at age 40. Mcdonalds at 20 when I already had an electronics education sucked but I money for bills and I snagged a free meal here and there.
GODLIKE: (November 30, 2010 8:16am)
It's still doing it so let me make it a TINY URL (http://tinyurl.com/2g6hlwl)
GODLIKE: (November 30, 2010 8:14am)
Just realized the post truncated the link to the first story (http://jobs.aol.com/articles/2010/11/17/my-unemployed-life-the-forgotten-woman/?icid=main
GODLIKE: (November 30, 2010 8:13am)
And here's the link so you can write your own story(http://www.thinkbigworksmall.com/mypage/archive/1/54938/). This may be a way to get our story out there.
GODLIKE: (November 30, 2010 8:09am)
No video today but I have a couple of cool links that will help us get the word out to the public. AOL is paying money for people to write about how the economy has destroyed your life. Here's an article someone else wrote (http://jobs.aol.com/articles/2010/11/17/my-unemployed-life-the-forgotten-woman/?icid=main
Mike8307: (November 30, 2010 7:55am)
5Pence... I'm seeing a lot of steam behind Ron Paul and auditing the Fed. I'm all for it. Time for the sun to shine in on that black hole. But how does that happen, Republicans do not have a majority in the Senate. More power than they had, but certainly not a majority. Considering that there are a lot of lukewarm conservatives (we call them RINOs) there as well, the power is far from blinding.
Mike8307: (November 30, 2010 7:50am)
You really weren't expecting a Wells loan to close on time, were you? Not sure from your post but it's almost as if it was a Wells second as well as a Wells purchase money mortgage. I've run into situations where the REO bank wants something like a "first right of refusal" on the new mortgage. Call it steering, call it captive audience, I call it against the law.
Real Estate Nate: (November 30, 2010 5:22am)
A day late posting since I spent the better part of yesterday trying to get a short sale listing of mine to close. Was I waiting on approval from the seller's first or second mortgage? No, I had that for the last 29 days! I was waiting on the buyer's mortgage company who delayed closing for the third time. Here's the kicker, if we go past today, the second wants another $1,000 to give approval for 30 more days and if they don't give their approval by Dec. 6th, we also have to ask the first for another approval. This is a Wells FHA loan. The buyers have moved out of their rental as of today. The seller is expecting to get out of this with no deficiency. ALL of that is threatened by the snail-like pace of approval for the buyer's bank. Did I mention this is Wells? Keep that in mind folks.
5pence: (November 29, 2010 7:36pm)
GODLIKE : I'm really looking forward to Texas Senator Dr. Ron Paul being in charge of the Federal Reserve oversight committee. IMO the guys a visionary. He was trying to warn everybody 30 years ago and wrote a book years ago called "End the Fed". At least that's something good to look forward to. I'm going to LMAO when he gets Bubble Ben squirming.
GODLIKE: (November 29, 2010 6:35pm)
BTW the title of his book is "Fed Up". He says we're all tired of being told how much salt to use, what car to drive, etc. etc.
GODLIKE: (November 29, 2010 6:27pm)
Picked up a copy of Texas Gov. Rick Perry's book at Walmart. No, I didn't buy it, I just picked it up. But I read the book cover synopsis - dang he sounded about like just about everyone on this list. I was shocked.
GODLIKE: (November 29, 2010 6:05pm)
I like the way mdeery thinks. Let's let the boys in Ireland have an uprising. This way all we have to do is threaten to rise up and they'll cave.
FlukerR: (November 29, 2010 5:18pm)
Should a loan mod reset on a credit report as a new loan? No. At least not unless a modification program is available to EVERYONE, including the self-employed and those without regular income who, one way or another, have found some way to maintain their mortgage payments AS AGREED.
5pence: (November 29, 2010 4:13pm)
The banks are entitled and we get their debt. Crazy or what?
JohnAppraiser: (November 29, 2010 1:05pm)
FL appraiser is partially right. I can tell you for a fact that I have had many contracts on homes for unsupported values. Then I am the bad guy because I cannot come up with the value that everyone else wants me to. Agents constantly tell me that they are trying to keep values up and things like "We need some high sales in this neighborhood" Realtors in the New Orleans area want values to be high. NOT ALL, but most realtors try to influence value as much as they can.
jgold: (November 29, 2010 12:06pm)
WOW the 1st part of your video is on the spot. How about you guys walk down the hall and show todays vid to the powers that be up there at FPF. Thanks for throwing stones in a glass house because no oe up there is listening to any of the rest of us!
joecolorado: (November 29, 2010 11:43am)
how about being concerned with what is happening here!who on earth do you think is bailing out the banks and institutions in the US of A? It certainly isnt anyone other than the US taxpayer, an lawdy lawdy lawdy........they are getting off scot free here too!!!!!!!...I wonder how much more it cost the bankers to grease the palms of the politicians in Ireland than it does here?or do we have parity?
mdeery: (November 29, 2010 10:02am)
No word on our lovely island Ireland lads? some people need to be hanged over there in the EU power chambers by asking irish Tax payers to dip into their pension funds to bail out the Europeans banks and institutions that hold all the Irish debt and are getting off scott free! Bring back the 1916 Easter Rising spirit and lets bring EU chief Olli Rehn to Dublin and hog tie him to a stick and let the locals have their way with him. Happy Monday all. Cheers
monicamat: (November 29, 2010 9:22am)
Yes the loan should reflect as new with the new terms and yes we need people to buy homes for the recovery. But, we need the banks to actually fund new loans. I've had 4 contracts terminated due to the failure of the banks to get it done. 804 score, 35% down - really? That's a deal killer? Please...
Sandie: (November 29, 2010 9:09am)
I do think we need to do something about the credit dings that people are taking for loan mods and short sales, maybe even foreclosures. It would depend on the circumstances on the foreclosure. It it was the result of job loss, major illness, something like that I can see it being looked at a little more carefully. However, on the other side of the coin, if it is a strategic default maybe a harsher hit may be in order. I don't know, it just seems like this mess is going to screw up the market for years to come for people who really couldn't help what happened to them.
GODLIKE: (November 29, 2010 8:56am)
ROB the number at the bottom of the HUD-1 simply means there's not cash needed to be brought to the table. The paid as agreed has to do more with the timeliness of the payments and then there's that pesky thing of you sold it for less than was owed. You agreed to pay the full amount but you didn't.
GODLIKE: (November 29, 2010 8:50am)
So what does ”Not paid as originally agreed” mean? I've never seen a loan mod on a credit report so does it show just like a foreclosure or someplace between a 30 day late and foreclosure?
joecolorado: (November 29, 2010 8:43am)
USPAP was created to assure that outside influence should not be a factor in estimating a value....that apparently did not work so HVCC was created.......perhaps we may learn from our peers mistakes.......
Bono Vox: (November 29, 2010 8:39am)
No Christina? Terrible show, guys, terrible.
jcollins: (November 29, 2010 8:19am)
Realtors over pricing homes. Now that is funny. If you talk to most home owners they would say that Realtors price homes for to low. Do the Math. If they over price the home it sits and cost more money and loss referrals. It is more of a shame that Realtors and appraisers can not get to get together on pricing. Appraisers why not help the Realtors and do a many appriasal for less. That's right USPAP does not let you. Can't we all just get a long.
Mike8307: (November 29, 2010 8:19am)
As for greed Realtors... lol. They can LIST a house at 40 Million Dollars, but if the agreed upon price is $125K that's the price. There is no greed, just what the market will bear. A contract (sales or otherwise) is a meeting of the minds, where both parties involved agree upon the terms. That's not greed, that's the free market. A 3/2/2 is a commodity, if you over price it, yours doesn't get sold. An over priced home does not drive the market up. If the Realtor is acting on behalf of the seller, then it is his job and duty to get the most for the sellers product. FYI.. I'm not a Realtor but a fierce proponent of a REAL free market.
joecolorado: (November 29, 2010 7:21am)
Why waste your time with hassles from banks/amc's that are unethical/cheap/demanding or that pay late?....dump them.Your duty as an appraiser is to report the market.If you can prove that there is a market that is increasing/decreasing/static,then document it in your report.I usually put the pdf copy of the 1004MC form gleaned from the MLS,that way the UW or reviewer cannot refute or demand I alter the data to suit their agenda(the proof is already in the report).If they insist,I require their demand in writing for my file to ensure when there is someplace to complain about external influence I will have it to hand.I NEVER change my report to suit someone else NEVER,remember YOU and only you have to defend the data in YOUR appraisal report,if you cannot defend it,just give back your license 'cos you dont deserve it and you wont need it at your new job.
dbpete: (November 29, 2010 7:18am)
The loan should not be reported as a new loan. However, it should no longer be reported as not paid as agreed either. It is now being paid as agreed from the point of modification (hopefully). Further argument would say that paying as agreed is a questionable statement. One could go so far as to say that if you make a payment on day 38 and pay the late fee, that you have "paid as agreed". You have paid later than scheduled, but you did pay and added the late fee. If you did not add the late fee at day 38, you would not have paid as agreed. Could be a stretch, but if there are built in provisions for these situation, then that is part of the original agreement. ... I don't think the loan mod needs to be reported as a mod, just the payments from that point must be reported according to the new deal (and retroactive to the point of the trial mod as well IF the trial mod is exactly like the final mod).
CSHS: (November 29, 2010 7:10am)
I had an offer accepted Sept 15 on a HUD foreclosure, and still waiting to close. I was told by someone at HUD that they are waiting for the GAO to settle litigation between the former closing attorney that lost the contract with HUD and the new one. I don't see that happening any time soon. Think they'll pay me the $100 per day penalty for missing the closing date?
dirk2290: (November 29, 2010 7:05am)
Yeah, that wasn't very smart for an Appraiser to think that Realtors are still over pricing homes. That's actually funny. I guess he has never sold his own homes and had his own opinion of value and instructed the Listing Agent to place a certain price tag on the property. Realtors just try their hardest to sell the home and not offend the Seller who has unrealistic expetations of their property. It usually takes awhile of idle activity or consistant low ball offers to realize they should drop the price. I am a Lender, so I don't go to a Listing Agents defense too often, but the FL Appraiser has it all wrong on this one.
Mamma-Realtor: (November 29, 2010 6:52am)
@kwrepro: FLAppraiser's attitude of not taking on a particular assignment is no different than a realtor chosing not to take an over-priced listing because he/she knows the seller will never sell at market rate. It's no different than me deciding to stop showing properties to BUYERS (working with buyers) because I know I will work my ass off and never get a sale. I've spent two years doing that already for less than 25% of the income I used to make. I haul garbage these days; it pays more money.
kwrepro: (November 29, 2010 6:35am)
FLAppraiser....you truly are an idiot! Sounds like you are just too lazy to do the work. As a Realtor, I don't take an over-priced listing because I might make a couple hundred extra dollars(if I even take the listing at all). everything has to so with the sellers situation. my obligation to my client is to sell their house for the most $ possible. If they owe a little more than what it's worth (with closing costs and expenses) then I have to do them the service of trying to get them out of the home with the least amount of $ coming out of their pocket(if any). Most sellers will want to atleast try to sell it slightly over what they are told the home is worth rather than taking $ out of their pocket right from the start, which is understandable.
GaryP: (November 29, 2010 6:22am)
I'm also assuming that appraisal issues may be contributing to that 23% as well. I'd love to see NAR do some more research on that to see where the road blocks are coming from.
GaryP: (November 29, 2010 6:21am)
As to your comment today about tightening guidelines, I saw something recently from NAR saying that 23% of all contracts are not closing because of UW guideline issues. That should tell us something about what is going on in the RE markets. That means that we are losing 23% of all purchase transactions for what I assume would have been otherwise credit worthy borrowers in the past.
Kris Realtor: (November 29, 2010 5:45am)
FURTHER if I were able to get $10k more for my client, that would only give me $200-$300 more in my pocket as the Realtor ... GREED? It's simply the right thing to do for your client...
Kris Realtor: (November 29, 2010 5:44am)
FURTHER if I were able to get $10k more for my client, that would only give me $200-$300 more in my pocket as the Realtor ... GREED? It's simply the right thing to do for your client...
Kris Realtor: (November 29, 2010 5:43am)
Agreed local small banks should UP their customer service, have funding AT the closing so these people can move on time ... makes for a much happier, less stressful experience for all, and something everyone, including the Realtors, may want to be involved in [again]! As to FLAppraiser comment "Realtors are still overpricing homes - GREED - go figure" - ???? Realtors' agency obligation to their clients is to get the most money they possibly can FOR THEIR CLIENTS .. Retail sales are a different ball game than foreclosures .. if I see a bank selling a house at $26/square, but a recent retail sale at $85-$90/square, I would tend to do the right thing for that "retail" seller and try the listing at the $85-$90/square .. I understand it is not a market to "test" pricing, but it is our agency obligation to our clients to get them the most we can ... GREED has nothing to do with it ... If it doesn't sell, no money is earned anyways...
FLappraiser: (November 29, 2010 5:24am)
As an appraiser I can say that I turn down the majority of appraisal requests I receive from banks due to their new appraisal guidelines. They want 3 comparable sales within 90 days OR ELSE you better be making negative time adjustments to the sales older than 90 days per the lenders. In the service engagement letter they point out they have determined that a specific county or MSA has been identified as a declining market. And that declining market requires negative time adjustments be made to the older sales (even if the appraisers analysis proves different). Way to much going on here to make me comfortable...sounds to me like they are trying to INFLUENCE TO OUTCOME OF AN ASSIGNMENT, which is a violation under the new guidelines. However, I have no where to report them to, how about that. So, unless there are 3 or more sales within the past 90 days, I turn it down. Let someone else deal with a lender like that, not me. However Realtors are still over pricing homes, go figure, greed!
dmorgan: (November 29, 2010 5:24am)
From what I understand, HUD is going through their transition period which will only last for 2 weeks. The agents for HUD had known this for weeks, and the title companies. Most of them do not notify the loan officers of this at all. I was almost caught in this mess myself and then HUD extended the transitions period so I was able to close. It should resume back to "business as usual" soon. Hope this helps.
jplapf: (November 29, 2010 5:18am)
Thank to both of you for your time an dedication to education. The "Swarm The Banks" response is worth the time for additional information and understanding of what is really going on in today's real estate market. Thanks for the post. If the intent of the chosen few were the dismantling of capitalism and the creation of a new world order, the created housing bubble could not have performed a better slight of hand.
rob: (November 29, 2010 5:06am)
I have a question. If a Seller sells their house in a short sale and the HUD 1 has a zero (not a negative number) in the bottom line as proceeds to the seller and the when the payoff is received from the bank. Isn't that considered paid as agreed?
Swarm The Banks: (November 29, 2010 3:26am)
I don't mean to be a fuddy duddy, but the entire mortgage securitization mess is not resolved. The bottom line is that home mortgages are being sliced and diced and resold. The problem that gets created is the homeowner LOSES control over their own home refinancing rights. Suddenly, an after the fact investor gets to control the future of the homeowner who is just trying to get the best re-fi possible. Suddenly, this investor can just tell the bank, NO. and not just for HAMP. It can be for other types of Re-fi's as well. here are two links. I wrote one article, the other one is a video of Dylan Ratigan and Marci Kaptur. The amazing thing to me is we are both saying almost identical things, and I swear I never saw their video until about two hours ago, and my article was written over two days ago. http://swarmthebanks.blogspot.com/2010/11/so-which-came-first-mortgage-note-or.html http://parallelforeclosure.blogspot.com/2010/11/dylan-ratigan-and-marcy-kaptur-hit-home.html