banking shinanigans

[gypsyman]

Just read where quite a few banks, haven't forclosed on people's homes, even though they havn't made a payment in almost a year. Banks credit rating with the Fed's will drop, and they'll have to have more money in securities, which they don't have. So let them live in the house, until push comes to shove, and hope for the best. Wonder if they'll do that when the credit card crunch gets tighter in the next year. Heard that will make the housing crunch look small.   gypsyman

[ms]

Here in Michigan you have 18 months before you have to be out of the house.

[beemanbeme]

Don't know about mortages but a friend in Memphis had some rentals and he said it took a minimum of 6 months to get someone out of a house for non payment of rent. And in the meantime, they could make a couple of partial payments and tell the judge they were making "an honest effort to pay" and the judge would usually find in their favor.  And the process would have to start all over.

Wonder how well the folks take care of the house while they're living there for free??

[ms]

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Don't know about mortages but a friend in Memphis had some rentals and he said it took a minimum of 6 months to get someone out of a house for non payment of rent. And in the meantime, they could make a couple of partial payments and tell the judge they were making "an honest effort to pay" and the judge would usually find in their favor.  And the process would have to start all over.

Wonder how well the folks take care of the house while they're living there for free??  Yep they run that scam on my friends rentals too.

[MGMorden]

Wonder how well the folks take care of the house while they're living there for free??

Don't know about how well they take care while they're living there, but I can honestly say that a lot tear it up pretty bad if they're foreclosed on.  Flushing bags of cement down the toilets and such.  Part of my job is maintaining databases for property values within the county I live in (I work in IT and that computer system is one that I administrate), and I can tell you that any mention of a home being a foreclosure home automatically makes the sale price plummet.  People are just too afraid of what might have been done to the house.

That might be where some of the pressure is coming from - depending on how much is still owed they might be afraid that the resale value of the home might not match what they've loaned out - particularly with the drop in housing values.

Not saying it's an excuse, just saying it might be a reason.