Tag Archives: subprime mortgage crisis

Michigan Foreclosure: The Big Picture

What do the statistics tell us about the big picture for our economy now?

That there will be more bankruptcies in Detroit, and everywhere else in Michigan, and the U.S.

The foreclosure crisis continues, if you want chapter and verse, read “Reckless Endangerment.”

Foreclosure sales are declining, but in judicial foreclosure states, which Michigan is not, and one third of the homes in foreclosure in those states are more than two YEARS behind in payments.

And foreclosures in the judicial foreclosure states have increased twice as fast as the non-judicial states in the last year.

The scariest sentence in the story on mortgage servicer LPS statistics:

“Overall, when compared to historical norms, delinquencies are almost double, and foreclosures are eight times higher.”

More foreclosures, more homes for sale, depressing prices further, more homes underwater, more foreclosures, the vicious circle continues, leading to more bankruptcies.

Although, if your home is worth less than what is owed on the first mortgage, you can file Chapter 13 bankruptcy and get rid of that second mortgage, which is good for homeowners.

Those stuck with the securities stuffed with bad mortgages are starting to sue for, of course, fraud, and getting some recoveries.

Regions Financial investors lost $1.5 billion in five mutual funds it sold, some as investment grade debt, but filled with crap mortgages.

They settled the mortgage fraud claims for $210 million.

Sounds like $1.3 billion still  missing.

Business Week has a story on debt collectors chasing people who already filed bankruptcy, and had the debt discharged.

If this happens to you, I can help if you cannot get your bankruptcy lawyer to handle it.

What happens is, bottom feeding debt buying companies buy bad debts by the thousands.

No paperwork, just a computer screen, stating how much you owe and maybe a couple other things.

They could “scrub” the accounts, checking for bankruptcy filings, but, hey, that cost money.

Of course, debts discharged in bankruptcy do not exist and should not have been bought and sold to begin with.

 

 

 

3 Responses to Michigan Foreclosure: The Big Picture

  1. More foreclosure issue, more foreclosure attorneys needed. Thank you for this article.

  2. I can see in the future how foreclosure will be if we don’t have expert foreclosure attorney.

Foreclosure Fraud, What Does It Mean?

We write mostly about specific issues and ways to improve family finances, what might be called micro issues by the economists. This post is a look at the macro picture, as it is referred to by the “dismal science” of economics. Massive fraud in mortgage documentation is coming to light across America. The Federal Reserve,Continue Reading

2 Responses to Foreclosure Fraud, What Does It Mean?

  1. Wall Street was incompetent to allow this to happen, and it is handling the situation incompetently. Proposals from NACBA and others to reduce mortgage notes and interest rates would decrease the value of the funds, but the funds would be intact. Hypothetical: I invest $10,000 a year in a fund which promised a return of $1000 a year, but I end up with a share of a fund worth $8,000 which returns $400 a year. Not good, but better than my fund managers destroy the fund, and the only who benefit are the lawyers who billed for the lift stay motions and the foreclosures. The current style of management is to resist to the utmost any law mandating re-writing mortgages. This Is the Louis XVI style of management. You will recall early in the French Revolution, Louis was called upon to become a constitutional monarch, in return for which the Estates General would reform his financial system and “bail out” his royal butt. He wanted to be bailed out, but not reform. Two decades later, a revolutionay military dictator reformed the system. Wall Street is worse than criminal. It is incompetent. I hope history doesn’t repeat itself and there won’t be a Napolean to straighten out the mess.

Summers Endorses Bankruptcy Court Mortgage Modification

DATELINE: WASHINGTON The following is the letter released Monday by Lawrence Summers, director-designate of the National Economic Council for the Office of President-Elect Obama: sent to the leadership of both parties in the House and Senate 3. Launch a Sweeping Effort to Address the Foreclosure Crisis: The President-elect has directed his White House and CabinetContinue Reading