Sounds like Crickets on this Forum subject!

[Kuuner]

Does that mean we've hit the other side of the bell curve on foreclosures and modifications?

 

For a while, my foreclosure activity increased in 15' and 16' due to rising values. We started reviewing our portfolio for those old charged off 2nd's and HELOCs for updated values and found a LOT of them had recovered to the point where we started contacting the borrowers to get their loans back into repayment status or, face foreclosure whereas before, it didn't make financial sense when the senior lien exceed the property value. That has trickled down quite a bit now to the point where I was seeing foreclosure/modification filings in the dozens per week to a handful per month now.

 

I have only seen two short sale requests come across my desk this entire year.

 

Is the foreclosure crisis finally over?

[IndyPoolPlayer]

No. We're in the eye of the storm. I think those HARP/HAMP modifications that were done a few years ago will come back around again, this time as foreclosures.

[Kuuner]

No. We're in the eye of the storm. I think those HARP/HAMP modifications that were done a few years ago will come back around again, this time as foreclosures.

Really? I hope your suspicions are wrong as there were a boatload of those that were done over the last few years. The mods were done below market rate with step increase to market rate and, many done with principle forgiveness or deferral, so it's not like they are ticking time bombs waiting. Time will tell.

[IndyPoolPlayer]

 

No. We're in the eye of the storm. I think those HARP/HAMP modifications that were done a few years ago will come back around again, this time as foreclosures.

Really? I hope your suspicions are wrong as there were a boatload of those that were done over the last few years. The mods were done below market rate with step increase to market rate and, many done with principle forgiveness or deferral, so it's not like they are ticking time bombs waiting. Time will tell.

 

Lenders can play all the shell games they want with principal deferral, but with the underemployment and increasing wage gap once these rates reset back to market norms these borrowers are going to be right back in the same unaffordable pickle again. Whether TPTB at that time will offer another banking bailout when these come to fruition remains to be seen.