Why Foreclose

Hi p1ke, Personally I think the whole system has gone mad-why on earth turf people out of their homes when there could be somesort of help they could give to them to help them stay housed in their own homes...we do it here rather than evict cos it costs more to evict and find another place to live for one person/family than to let them stay put and sort it out from there-the whole thing is madness to me and in a sense am sooo glad I dont live in the US-England may have its faults but much rather live here than anywhere else..hugs LoLo

Ah, p1key, you look lovely with those stars in your eyes... Banks aren't in the business of helping the economy. They're in the business of making money for themselves, and as much of it as they possibly can. And they no doubt get tax breaks for carrying all those empty, foreclosed properties.

P1ke I have wondered this to here in the UK as well I know there are Companies here that buy your House and let you rent it but and I mean but they are also a rip of in a way as I tried that 4 years ago and they do not do as they say and it is quite Complicated so I agree with what you are saying there But then these Companies will say, we are a Mortgage Company not a Letting Company they do not look at the fact that at least they have Money coming in xxx

Investors are buying these foreclosed homes. Also, if you were low on money and knew that if you stopped paying, you could stay anyway, would you?

Great idea, but let us not forget that the mortgage companies are the criminals who put the people in this mess by scaming them into the balloon interest rates that they knew were not affordable but went ahead and let the poor schumuck sign for the house anyway- knowing they were going to rip it back in three years!!! Luckily when we bought our home we were very aware of these "great" offers of balloon interest rates and when offered one (even though it made the initial payments less) we said ABSOLUTELY NOT! Because we were aware that the there was a huge posibility of our mortage jumping from $1100.00 a month to $1700.00 in a few years time. Unfortunatley many of the people hit with these "balloon interest rates" were first time home owners who did not know any better. It pays to be educated in any subject before entering any type of deal!

The mortgage company would rather have the trickle of money coming in. I think if it were policy to keep them on as tenants and then re offer the remainder of the mortgage, you would have more people defaulting on their mortgage payments. There has to be a hard consequence to missing the payments. Sometimes banks will offer a mortgage with a mortgage holiday where the person making the payments can stop for 6 months and then resume at the end of that time but I think the interest is continually added none the less. People can always approach the lender and explain a difficulty because the lender would rather continue the arrangement but just extend the length of repayment years. I can see what you mean, it is in everyone's interest if the people who are made homeless are left in housing and can resume where they left off ,if they can pick themselves back up.

I absolutely agree wholeheartedly!!Why aren't you our president? With whits like that it would be great to have you as our president..It would be the smartest thing to do..but sadly there is to many people without this common sense.

You'll never get anywhere in banking or politics. It's a great idea and makes perfect sense.

The biggest issue is when they forclose on homes is so many people tend to destroy the homes before moving out to where there is a lot of work needing to be done instead of having a nice home someone would be interested in. And since property values are still declining due to no jobs in a lot of areas, this makes you wonder what will become of some of these for sure. I have seen homes on the market for a couple of yrs. now left unmaintained to where no one would ever want them, and then they are left alone still as well. You could be onto something here, but unfortunately I cannot see anyone bigger in office thinking this way. But you never know.

Sounds like a great idea...however.. How many people will just not pay their mortgage at all when things get rough. Telling themselves well it's ok, when they take it back over I'll just pay rent for a while and then buy it back...lol It sounds good at first but I think it would just cause more problems. The cost of houses is ridiculous these days. Many banks financed houses for more than they were worth in the past few years and that is a big problem too...you can't even get what you owe many times. There are so many problems there needs to be many fixes. But I agree if something like that could be worked out it would help in many instances as long as it isn't abused by lowlife freeloaders.

I agree there should be a way for these people to save their homes, even cutting the mortgage in half untill they can get back on their feet would be better than a house sitting empty to go to he*ll whith no one in it. Too many jumped into houses that they could not afford to start with, that is the main problem. But these empty houses are growing by the month, and does not do a town good for someone looking to move to their city. I do know some that are getting some real bargains now that others have lost their homes. Will things pick us is my question, don't seem like it where I live. My daughter has to go to child support a lot to try and collect what is owed to her kids, it is in the building where they do medicaid and food stamps, the line is getting longer by the day, seems mortgage companies don't care what happens to you or the property, once you get behind. If you couldn't afford the payment now, could you in the future. If people bought what was in their means, that they could afford, some would not be in this mess. I know what it is like to lose a home, not to forcloser but to storms, and you work long and hard to get where you are. finally saying I can't do this any more must hurt very badly. I thought Obama had it all fixed to help these people, where is he, haven't talked to one yet that says he has gotten help.

We usually think US is a country of affluence.People from many countries migrate there in search of fortune. Some of them become successful. But most of them can't able to comeback to their countries for want of required money. You revealed another picture of America's shattered economy.

It does sound like a good idea, and I was heartened to hear from one of your responders that it is happening sometimes. Another problem will be that because the value of the homes has dropped so much some people with negative equity still owe their lenders a fortune even though their houses have been repossessed. The debt is not always extinguished. Of course if it is left to the corporations, some would do it and some not, having different opinions about what will be best for them and their shareholders and stakeholders. If the local or state authorities were involved, it might be a different matter.

Most of the time it is the simple things that work the best! I think these politicians over there are probably complicating things too much and have probably not thought of something as simple as that! Perhaps you should move over there and take over leadership of the country! I reckon you would do a great job.

I'm with you...why leave your home? Why have all those empty houses? It seems most sensible to do as you say and it's a win/win situation.

The whole point of foreclosing was because they were not paying their monthly mortgage payments, so can they even afford rent? Besides,a tenant would have to be approved via a credit check, and that bank has already deemed them a bad risk with bad credit, so they are a bad risk. Plus, when a property is up for sale, and there are tenants involved, the landlord must give them 60 days notice to move if someone wants possession. Many buyers won't put an offer in on a property unless they can decide on the closing date, and often it is sooner rather than later. Thus, the house must be unoccupied so that the new purchaser can stipulate the closing (purchase) date to coincide with their current move out date on the place they are living in now. The bank wants the property to be available for transfer (closing) as soon as possible. They do not want to have to wait for a tenant to move out. And sometimes the tenants don't move out even when given proper notice. So, a legal battle will ensue, costing the bank money and valuable time when they could possibly have sold the property already.

Your idea sounds far too logical, sensible and people orientated for a mortgage company to pick up on! However, the ex-mortgage holders may not be the best tenants from the mortgage company´s perspective as landlord. I guess a good few would carry a healthy sized grudge against the mortgage company which foreclosed on them, which smashing up a property the mortgage company now control might just help lighten. I looked at allot of repossessed properties when I was looking to buy my first home, and a large proportion of them had been smashed up by the outgoing mortgagees. Allowing a housing association to manage the properties would definately be a more sensible option than allowing them to stand idle though. Properies deteriorate very quickly when they´re empty, and no-body wins.

Some mortgage companies and banks have made this type of arrangement with homeowners who were unable to pay their mortgage payments...and it is a good idea that I wish more would adopt. Sometimes the only problem is that the mortgage was an adjustable rate one that adjusted up to a cost the homeowner could not afford. It only makes sense to rent the property to the homeowner until they can obtain an affordable loan. I live in Florida, which has been particularly hard hit by foreclosures. We're having a problem with these vacant homes that are being vandalized, with unkept yards that are attracting snakes and rodents.

Well see first that would only make sense to us people who are on the house owner side... as it is the banks seem to not understand common sense. I have a relatively large family..we have had a couple people in our family lose there house and walk away as well...because the banks wouldnt work with them. We have had this discussion many times when we have get togethers on the banks and the government and how things should be handles but then we are common folk who live with common sense... not in the world of finance where they apparently know more than we do!! I am from Michigan and yes, we are one of those US states that is being hit hard with the foreclosure market at the moment. I live in a house that my parents bought for us a couple yrs ago and we pay them our rent so I am lucky in that aspect that my parents are my landlord --not a bank. Hope all is well with the housing market in your area!! Happy Mylotting.

P1key you are unfortunately missing one very important aspect in this discussion that you have started about foreclosed properties and housing and that is that You, My Dear Man, are thinking rationally and logically which is a lot more than I can say for the fools that Do foreclose on the properties! Anyone with one eye and half sense would do as you propose, but then again that would mean that they were thinking logically which brings us right back to my original point!! There is a word that we use for acts such as foreclosing on properties and letting them dilapidate instead of keeping them occupied, keeping them in good condition and making a few bucks at the same time and that phrase is... STUPIDITY!