Agents

I was reading an article about IndyMacs Mortgage struggles.  The article was about how the bank which is now OneWest Bank, is trying to keep up with the enormous amount of loan modifications it has been deluged with.  It was interesting and said a little about the state of affairs that all banks are in right now. With Loan modification requests reaching historic highs, the banks are treading in new territory. As I said, it was an interesting article and then I clicked on the video.  http://bit.ly/4DU2Mq I thought the video would be about loan mods and I was shocked while I watched it.

It seems that banks are sending out the notices of default and the notices of sales, but then not doing anything. The bank can minimize the amount of loses it takes by not going through with the foreclosure.  If the home owner moves out, he is still on the hook until the bank actually takes the property back.  People are walking away from their homes in the belief that they have to, and then getting bills for back taxes, water and even fines for owning a rundown property.  It seems the banks are picking and choosing which house they actually foreclose on.  I have not seen or heard of an instance here in California where this has happened, but it does not mean it has not.  Be on the safe side, tell your family, friends or clients their best interest is to stay in the home until a representative from the bank knocks on their door and asks them when they can move.  Or better yet, send them this and have them watch the video.

We have not been here before.  Yes in the 32 years I have spent in the industry, I have seen corrections in the market.  I have never seen anything ever to this magnitude.  Just like any other correction though, we can work through it.  It may take longer, but we can work through it.