Hey Bankers...What impact will this foreclosure ruling have?

Don't overlook this statement:
"Friday's decision applies in Massachusetts, and need not be followed by federal judges or by courts in other states."

The question is how other states AG's will view the decision. Foreclosure vary from state to state. Some allow foreclosure non-judicially, some have to go thru a court foreclosure process. Some allow both like Washington. Producing the exhibits for a court foreclosure and what needs to be provided for a non-judicial foreclosure aren't necessarily the same. So, one could say the jury is still out as to what this case really means.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

-Thomas Jefferson

This won't impact me a bit (or most community banks), as I hold all of my own paper, and I literally follow every property from cradle to grave in the loan process. I'll be taking 5 properties into possession in the next 4 weeks. All "I's" are dotted and all "T's" are crossed.

The bummer of it is that I've banked these folks for 5-12 years, and I know their families. Tried everything to help them save their properties, but at some point in time, some loans are due to fail regardless of restructuring, etc. Three of these were restructured twice. Only one of these is judicial (40 arce farm), while the rest are straight forward.

Very interesting. Thanks for the feedback. Our place was/is financed by a local institution, and they also hold their own paper. I find that somewhat comforting. I can tell you this, however. I've pissed away alot of money by going with a fixed interest rate over the years. What a crock that has been!

Great time to get a fixed rate, and not a good time to get an adjustable rate.

It does get personal, but the folks who are in these situations, except for one, accept that we have tried everything we can to help. They just can't make it. It is sad.

One is going down due to internal fraud in their company, another due to the smoking ban. (I can actually track his financials showing a decline after December 2005). The one in denial is a person who turned to drugs. These we all deals underwritten and 70% LTV or less, and plenty of real actual cash flow available to service debt.

What a mess.

What suprises me most is the total lack of diligence done by the mega-banks and the securities investors concerning ensuring clean chains.

We just bought a foreclosure. Paid $100k less than what it sold for in '06 and got a 4.75% 30yr fixed interest rate.

I thought we would have a much tougher time obtaining title insurance than what we did considering it was a GMAC owned property.

All this is far from being sorted out.

Yeah, there will be a ton of foreclosures in 2011. I just get to get mine out of the way early in the year.

Title companies have changed underwriting on foreclosed homes. I know of a refinance that is being held up as the folks bought at the trustee's sale and didn't get title insurance. Now the ownership of the foreclosed loan can not be tracked thru the recorded public documents. The lender that appointed the foreclosure trustee did not have an interest in the laon per the public recorded documents. As a consequence, it does not appear, at least on the public record, that the lender intiating the foreclosure had the right to do so.
Cash is king in the real estate market and other markets right now. A well driller friend just bought an almost new drill rig for less than 50 cents on the dollar.

That could prove to be a costly mistake. Rule #1 when buying a foreclsoure in this market is to absolutely be sure you can get a commitment on the title.

Without that, there is no way to prove the property is really yours.

In all likelyhood the previous owner will not show up years after being evicted and decide they want their home back. Since in most cases they will need to remedy the existing balance deficiency.

If the refi is something critical to continue ownership for the above mentioned scenario,......... they may be up poop crik with nothing but their bare hands for paddles.

DF steered me to 4 1/8 30 yr fixed. I like DF!

A good man is that Dogfish

Considering our's was a purchase with less than 20% down I am more than happy with our 4.75%