Friday, June 28, 2013

Letter to Brian

Submission for modification January 8, 2013

Paper worked to death

Point of contact states approved as of May 15, 2013 paper work coming

June 28, 2013, nothing and no response from point of contact

June 28, 2013 overnighting complaint letter to CEO

Wednesday, June 26, 2013

Great idea...

"Last year's $25-billion national mortgage settlement required five giant banks to assign a single employee to each borrower seeking a loan modification — a personal guide who could cut through the bureaucracy.

The so-called single-point-of-contact rule sought to address the biggest complaint of borrowers trying to save their homes: Getting bounced around among random employees with conflicting answers.

Great idea. Too bad it hasn't worked much. According to a report this week from the settlement's official monitor, Joseph A. Smith Jr., a third of the 60,000 serious complaints about the banks' handling of distressed loans from last October through March involved single points of contact. The contacts were either not provided, not helpful or hard to reach."

Monday, June 17, 2013

Lot prices

"In recent years, builders have become accustomed to pay below true market value for finished lots. In some markets the finished lot prices fell to as low as 5% to 6% of home values. Builders and developers wrote down lot costs and were able to dispose of them at less than the cost to develop. Additionally, as the REO inventory grew, and many builders were acquiring lots from banks, not developers. Supply was plentiful and the holding cost of lots was comparatively low.
As recent activity has heated up, builders are challenged to control lots that they previously were reluctant to carry on their books. Developers and investors who opted to hold out through the downturn are now being rewarded for their patience. In many markets finished lots in prime locations account for 20% to 23% of finished home price. The price of lots in the same locations have jumped from $15k to $30k plus."

Friday, June 14, 2013

Credit bubble

"After the Great Recession, many commentators talked about the "housing bubble" and how problems in the economy were the result of the unprecedented run up in housing prices. For eight years, housing prices in the United States increased at double digit rates, fueling vast amounts of speculative buying and the psychology that housing was a great investment and could only go up. Describing the problem in that way makes it very difficult to construct a solution. How do you change human nature to eliminate bubbles? How do you prevent developers from building too much housing?

On the other hand, if we view the problem as a credit bubble, we might be able to protect ourselves and speed up the recovery time after future recessions. While no one can predict when the housing market will crash or how far it will fall, the loosening of credit standards for mortgages is easy to gauge. For example, in December 2007, the New York Times reported, "Fed officials noticed the drop in standards as well. The Fed's survey of bank lenders showed a steep plunge in standards that began in 2004 and continued until the housing boom fizzled."

Thursday, June 13, 2013

Up again?

"Although the housing market is recovering in many regions, new research suggests there’s still some cause for concern: Foreclosures are on the rise again. After hitting a 75-month low in April, U.S. foreclosures rose 2% in May and bank repossessions jumped 11%, according to data released Thursday by RealtyTrac, a real-estate data firm. The increase comes after five straight months of declines. The good news is that May’s drop aside, foreclosures are still down 28% for the year, thanks to stronger markets in Arizona, California, Georgia and Michigan."

Monday, June 10, 2013

Jan 8

Turned in paperwork to Bank of America for modification Jan 8, paper worked to death, five months later still no word.

Ah, what happened to the new mortgage settlement that they have to respond in 30 days??

Friday, June 7, 2013


"One week ago, I reported on a recent study by the Federal Reserve Bank of St. Louis that found Americans had recovered less than half of the personal wealth they'd lost during the recession, once you accounted for population growth and inflation. Now we've got an update. Yesterday bank posted fresh numbers reaching through the first quarter of 2013, and it appears households have now reclaimed 62 percent of what disappeared."

Tuesday, June 4, 2013


"The pace of home price increases stayed strong in April with prices up 12.1% year-over-year, CoreLogic says.

The annual increase is the biggest in more than seven years. Prices were up 3.2% in April from March.
"Increasing demand … coupled with low inventory, has created a virtuous cycle for price gains, says Mark Fleming, CoreLogic chief economist, noting that home price growth continues to "surprise to the upside."

Monday, June 3, 2013


"At the height of the financial crisis, bargain hunters would gather each week on county courthouse steps to bid on foreclosed properties throughout Northern and Central California. The inventory lists were long, especially in hard-hit areas such as Sacramento and Stockton. But the auctions were generally short affairs — often because real estate speculators were illegally fixing the bidding process.

In the past three years, federal prosecutors have charged 54 people and two companies in three states for bid-rigging during courthouse auctions of foreclosed properties. Most cases originated in California, the state with the highest foreclosure rate during the financial crisis. Nearly identical rings were also broken up in Raleigh, N.C., and Mobile, Ala."