Coronavirus Mortgage and Real Estate Crisis of 2020

nbtapia1

LoanSafe Member
Jun 3, 2009
165
5
18
USA
On 2008 by Reading/apply some of the strategies shared in here, I was able to keep my house, and we are still in my house.
Please keep this forum open, I sm sure we'll need it again.
Thank you and stay safe‍♂
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
After losing my home to Wells Fargo in 2012. I found out who the crooks are. They are the Democrats. Obama let the banks off of their criminal prosecution. The Office of the Comptroller of the Currency dropped the ball on the Independent foreclosure review. The people who lost their homes started a movement call Occupy Wall Street. The banks were vandalized in some cities as the anger of the people wronged started to intensify. Obama saw this and diffused it with plants that subverted the movement. I know this as I was part of it protesting in front of the District Court here every day. Seeing the injustice I began to develop instruments powered by substantive law to put on properties to stop foreclosures. I also developed documents from the documents used against us to stop the Trustees from foreclosing. The main problem with this economy is the unharnessed greed and cronyism in real estate and credit cards. This is and can be traced to the crony banks. I run the largest electronic repair lab in the state of Utah and I do not and will never take the crony cards. For those who say it is Trump's fault it in NOT. Maxine Walters sitting on the House Financial Services Committee sat and watched this sin against the people take place. I am 65 and have seen alot of corrupt politicians and I will say that Trump is the only one who cares about you and me. This is why the democrats want him gone. He has artfully exposed their corruption. Just look at the last time there was a bailout. The corporations, the banks and the stock market the GSEs . These cronies were bailed out quarterly throughout the OBAMA YEARS. As soon as Trump took over this nonsense stopped. Remember this, when you signed that DEED OF TRUST sanctioned and approved by the US DISTRICT Court you signed away your rights. The banks are so quasi they can changed their acting status. They have power over you and your country. Rant over. Thanks for reading.
Nice to see you again Jefferey and thank you for your educated comment about the current crisis.

I agree with the greed of banks and credit statements but this economic crisis is much more than about that. It is about 50-70% of America's working-class who are now unemployed and unable to find work in order to make the needed cash to pay their bills whether it be a mortgage or simply food.

The bailout is similar to last time. Nothing for Main Street and everything for the big banks who help run the world for the secret Elite who rule through these financial institutions that will buy up 70% of Main Street for pennies on the dollar when this is all said and done.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
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Southern California
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I have to thank this site in part with helping me get a successful modification with Chase several years ago. Now like so many others, I have lost my job and I was already a month behind on my mortgage. I have an excellent modification with 3% interest and I'm not upside down on my loan. But I'm worried about taking any kind of forbearance on my loan, because the Hamp rules state that if you fall behind three months all the terms of your modification are null and void. I also don't trust Midland Bank (that bought my loan from Chase) to not suddenly want all their money back when the terms are over. IN addition, I know I'll lose the incentive (5K in principle paydown) to not fall more than three months behind. To make matters more complicated it's an FHA loan. Our condos were at a record high but I know from reading your blog that prices are going to free fall even in Arlington, TX. My unemployment income won't start for a couple of weeks and I'm really not sure what to do. I'm a single 59 year old woman that's managed to hold on to this home for 10 years in spite of ups and downs. No children, no one to help. ( Side note: I find it hysterical when people start blaming both parties, when lack of regulations on mortgage companies and banks is what usually causes this mess. And both parties are accountable!! All the way back to Clinton and Bush. As long as both parties are bought and sold by big banks that fund their campaigns nothing will change.) Scared in Texas....thanks in advance for your wise words.
I'm glad that LoanSafe was a great tool for you to get your previous loan modification. Unfortunately, I see the same problems and most likely much worse issues happening with the current economic crisis than we saw between 2008-2013.

We can expect home values to drop to levels even lower than 2008-2013 so much of the nation will be underwater.

In regards to unemployment income, I think this may be the next domino in the crisis. People may not receive their checks on time and or be able to apply due to the backlog and lack of . Gov personnel to process millions of applications. The results could be catastrophic to many American families.
 
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lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
Good Luck with Mr. Cooper AKA Nationstar. They are the absolute worst. Not sure if you are behind on your payment or not but unless you are at least 30 days behind they won't even consider a loan mod. Many people have to actually default and flirt with foreclosure before they will even talk to you.


[/QUOTE]
Thanks LIITX...It's crazy now with my work volume dropping drastically, but MR POOPER still wants me to pay and I will do my best to pay my monthly payment. But, it also angers me when they tell me I cannot get a modification. I haven't missed a payment for almost 5 years and they treat me like that. I never intended to stay in this house this long...actually was going to move on in 3-5 years but life happens. I can't REFI because I owe almost $100000 more than it's appraised at. I would love to get ahold of ALL of my documents since 2005 and have a financial review done of all of the financial charges placed against me. I'm sure there are a lot of junk charges and other unnecessary charges that were piled onto my loan. If you guys can think of any strategy short of defaulting at this time, I'd appreciate it. I want to be an upstanding example of a citizen, human and debtor, but it's getting much harder to STAY CALM AND CARRY ON.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
86
3
8
Well, received my "STIM" payment and about 98% of it went to my $3200 mortgage payment! Not sure about next month. If I can help it I do not want to fall behind because I will be severely punished by MR POOPER and company. Like you said, if I am in a HAMP and miss three continuous payments then the modification is torn up and the original terms are reinstated! It's a nightmare enough now. I couldn't see paying an INT ONLY LOAN now and then for it to jump to whatever variable interest later in time. What is the next move? I've identified that U.S. NATIONAL BANK ASSOCIATION TRUSTEE FOR SARM 2005-23. I've also identified an address of as the following is located in online documents:

All notices required to be delivered to the Trustee hereunder shall be delivered to the Trustee at the following address:

U.S. Bank National Association
1 Federal Street

Boston, M.A. 02110
Attention: Corporate Trust Services
Telephone: (
617) 603-6406
Telecopier: (
617) 603-6637

Since MR POOPER won't do anything for me, does anyone think writing to the TRUSTEE would help at all? Please, everyone that has any knowledge or personal experience, weigh-in.

Thank you all.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
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Southern California
www.loansafe.org
This is not entirely Trump's fault. Most of the blame should be on CHINA who did everything they possibly could to lie, and make themselves look better. Even right now, they still haven't finished their lies, scams and schemes. We have ZERO clue what the real numbers are, how this virus works, and what the long term ramifications will be. The calculated decision of the Communist Regime to try and hold power, and save face - is the reason we are at the point we are now.

Regardless, I didn't come here to talk about the News Media & their obsession with traducement journalism. I actually came here to talk to @Moe Bedard. While I'm sure your partially aware, I wanted to say it out loud. We are in unprecedented times. I know when you started this website back in 2007, people were getting wrecked by their ARM Adjustments. Then, it became people laid off from the craptastic economy that followed.

Those days were so long ago, and the times have changed. There is a unprecedented amount of people who are going to be defaulting on their home mortgages, in April & May. One servicer had estimated that 25% of their FHA Portfolio was going to sour, while another said that they estimate 17% of their Fannie Mae/Freddie Mac loans would default. You also have MILLIONS of people who are going to be on forbearance programs, not fully understanding how they work -- or, able to come up with the 4th Month Balloon. These servicing companies are not prepared for all the defaulted loans, and they don't have the ability to service all of them. If there is HELP - most people will fall through the cracks.

The more I sit around and think about it, the more concerned I get about the number of people who are going to be falling behind. So many people either bought a home and were approved with Sky-High DTI's, and No Reserves... or they bought years ago, and watched their income & savings dry up.

The point I'm trying to make, is I'm expecting a surge & flood of traffic and new users to LoanSafe, very soon. And I wanted to ask.. What is being done to prepare and keep this site alive?

I know you are doing the best you can at the moment, but I wanted to formally ask, as well as offer my support. If I can do anything, or donate my time in anyway, I want to know. I also think you should consider adding a donation button on the site - for those that have received help, or adding some additional advertisements.
Hello and thank you for your comment.

As you can see from my sparse involvement and late replies in the forum over the last several years, I'm only working on a limited part time basis on the LoanSafe forum and had to layoff all my staff, including my son Evan who worked here for 4 years. The reason being is that over the last 7 years, this website does not provide an income and or enough money to support me so I can create more content and or help people daily or warrant a full-time staff member.

I have kept the LoanSafe forum alive at a financial loss over the last 5 years because I knew that someday it would be needed again and it looks like this time it may be a much larger crisis than the 2008-2013 fiasco.

Like you, I also see the mortgage writing on the wall and anticipate millions of loan defaults from businesses failing and the unemployed losing their jobs and a lot more traffic as a result. In fact, I anticipate the fall out to be much worse and even apocalyptic because of the number of small business that will fail and the jobs that will continue to be affected is going to be economically catastrophic to all of America.

No one will be immune this time.

With that said and to answer your question, over the last month we upgraded the forum software and server. We may add some advertisements in the coming months if the traffic picks up more and we need staff to help out.

Any help and or forum advice you can offer to new members and guests would be awesome. I sincerely appreciate the offer!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Millions unemployed, homebuilding collapses as coronavirus ravages U.S. economy


By Lucia Mutikani

WASHINGTON (Reuters) - A record 22 million Americans have sought unemployment benefits over the past month, with millions more filing claims last week, almost wiping out all the job gains since the Great Recession and underscoring the toll on the economy from extraordinary measures to control the novel coronavirus outbreak.

The deepening economic slump was also amplified by other data on Thursday showing manufacturing activity in the mid-Atlantic region plunged to levels last seen in 1980 and homebuilding tumbling by the most in 36 years in March.

The reports followed dismal reports on Wednesday of a record drop in retail sales in March and the biggest decline in factory output since 1946. Economists are predicting the economy, which they believe is already in recession, contracted in the first quarter at its sharpest pace since World War Two.

"The scale of job losses we have had in the past four weeks is remarkable, nearly all the jobs gained since Great Financial Crisis are now lost," said James Knightley, chief international economist at ING in New York.

Read more @ https://finance.yahoo.com/news/u-weekly-jobless-claims-seen-040436558.html
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
On 2008 by Reading/apply some of the strategies shared in here, I was able to keep my house, and we are still in my house.
Please keep this forum open, I sm sure we'll need it again.
Thank you and stay safe‍♂
Thank you for your testimonial and your support! We will keep it open and please stick around to help others as we help each other through this crisis of a generation.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Just wanted to say this site helped me out through a hard time. Glad you're still around, and the wealth of information, even if the game has changed, is still huge. Another mortgage/housing crisis has been in my mind a lot lately as we go through this situation. It brought me back here just to see how things were going, and it was quite the trip down memory lane re-reading my old posts.

Between the last recession, my wife having cancer (twice! and she is A-OK now :) ) ... it proved to be too much, and I had to go through a strategic default. I documented it on here, not many people in Iowa had to go through that so it was a bit of a dark alley.

I currently own my home cash outright here in Central Florida, but if everything I suspect will happen... happens... it will be painful watching the capital destruction I guess. At least I have a place to stay though, and that's more than a lot of people might be able to say soon. When I got this house, I had to laugh, I did consider a mortgage and they approved me to an amount that would have been asinine with almost nothing down. Right back where we started in so many ways.

I would prefer to avoid the raw politics of this situation, but suffice it to say this has brought so many things that have been bubbling in the background into the foreground QUICKLY. The lack of sick time/PTO (which even I don't have...), wobbly health insurance market system and housing insecurity. For years I've read about how the average American couldn't come up with ~$500 cash in an emergency, and here we are. Some of that is personal choice, some of that is due to the system we have collectively nurtured.

Thanks for reading, and sadly look forward to what might be ahead for our nation and the activity of this forum.
Hello Gimpster,

Thanks for sharing your story again and also where you have been over the last several years. It is great to hear that you recovered from your strategic default and were able to own your current home free and clear.

As you pointed out, our current economic system and the financial wherewithal of most Americans is shoddy at best and is quickly showing just how fragile our work really is.

I predict that this coronavirus epidemic will go off and on another few years and as a result, 50-75% of current "property owners" (both residential and commercial) will lose their properties over the next 3 years
 

anna17

LoanSafe Member
Nov 11, 2009
21
3
3
NewbieFed, I also have a securitized loan serviced by Mr. Cooper. Let me tell you something -- if your loan was securitized in the ancient days of 2005, NO ONE is getting a dime out of it. By now, any companies that invested in these things have all filed (and generally won) lawsuits against the banks that sold them these risky securities misrepresentated as solid investments. Yet Mr. Cooper still pulls this "...but the investors won't let us" crap. I can't imagine anyone still being invested in these securities; they've lost money right and left. The security my loan was packaged in was once a pool of nearly 2000 loans. Now it is less than 50!
Try googling your security's name + "lawsuit." You'll find it quite interesting.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
86
3
8
anna17! Thank you so much for shedding light on these crap loans. I was finally able to get it "modified" in 2015 and have until 08.2020 to get a whopping $5000 discount if I don't miss any payments! Wow...$5000 discount when I probably have more than that in junk and other hidden fees. I also had a very large balloon payment added to the end of this mortgage. One member said if you miss any payments then you revert back to the old terms. I hope this is not true and wondered what you have done or doing about your securitized loan. Please provide more details if you can. Thank you.
 

anna17

LoanSafe Member
Nov 11, 2009
21
3
3
Hi NewbieFed - Well, I've essentially done nothing, but I've managed to tough it out. In 2017, my payment went from 2200 to 4400. The original plan was to refinance well before the payment went up, but life threw unexpected twists at me, and I was not able to. I couldn't pay it, really couldn't sell and downsize either, so I fought and fought for a loan mod. In the end, I gave up. My house has gone up in value, and Mr Cooper flat out doesn't do loan mods if they can make money by foreclosing. Of course, they make excuses about how "the investor" won't allow it. It was a complete lie. "The investor" (assuming anyone is still invested in this loser security) knows nothing about it. From what I can see, the typical investor is something like the Lansing, MI Bricklayers' Retirement Fund or other such humble organizations. Several such funds were once invested in my security (HALO 2007 AR2). The only shred of truth in that is some of the securities have servicing agreements that frown upon loan mods. I read the servicing agreement for my own RMBS, and it said loan mods are fine if they're going to prevent foreclosure. Of course, Mr. Cooper lied about that, too!
I got so close to being a bag lady shuffling around the streets. But then I completely lucked into a temporary business deal (perfectly legit and all) and suddenly had some cash.
My dad passed away in 2017, my sister and I sold his house and split the proceeds. He owned it free and clear, so I have a reasonable amount of money socked away. I've been going ahead and paying the $4400 a month, sometimes dipping a bit into my savings to do so. But I have a decent rate on my mortgage, so even though it's a chunk of change, a lot of it is going toward principle and building equity. I've lived in this house for 12 years now and it has doubled in value. Prices are still going up, so I figure it's a reasonable investment. For now.
Sorry I can't give you any useful info about your situation. Every day I keep searching the news for some new, smart plan to keep people in their homes if they're out of work through no fault of their own. I'll be okay, but a lot of people are facing serious challenges. I feel for them; I have truly been there before.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
86
3
8
anna17, thank you for sharing this information. So sorry to hear about your father's passing. I am shocked at your monthly mortgage amount. I guess you have a Interest Only mortgage? This is what I initially had for all of those years and it was scary. I was in foreclosure before I was able to get a modification. This current modification says after five years it will go up two points based on the interest rate. What does that mean for me now? I'm at 3% I believe. With the interest rate being zero(?) what does it mean for that two point rate increase? Does it mean it will stay at the current rate because of the fed rate now? After I did the mod my payment actually went from $2500 - $3200! I've tried my best to maintain but it's getting much, much more difficult due to the current COVID-19. Where are you based out of anna17? Take care everyone.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
86
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anna17

LoanSafe Member
Nov 11, 2009
21
3
3
Yep, you guessed it. I initially had an interest-only mortgage. I knew exactly what I was getting into,, and I actually had a good reason for a "pick your payment" mortgage back then. It's a long story, so I won't bore you with it. But the plan was to refinance way before the interest-only period was up. For various reasons, that didn't happen.
I live just east of Seattle, and my monthly payment isn't all that crazy given how prices have shot up here. In some ways, I've been unlucky; in other ways, I've been very lucky. This house was somewhere in the range of affordable when I bought it, and now it's worth a small fortune. If I were just starting out now, this would be a place I could only dream about.
 

OneHugeMess

LoanSafe Member
May 30, 2016
579
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To Both of you, there is no shame in being sold an Interest Only, Option ARM or Pick-A-Pay Loan. While we may have been slightly over our heads... one has to remind themselves that the entire industry was pushing these loans as safe, sound, reliable ways to finance homes. It's not our fault, we bought into that. I don't blame myself, and neither should you.

Regardless, I do have a theory and some advice for both of you. One thing that is clearly apparent, is that Millions of People are currently in forbearance on their loans, with no apparently way to catch up -- short of a lottery ticket. Congress seems realize this, and if you ask me, I would put money on it -- that a new version of Making Home Affordable / HAMP, is on the way. You've got millions, and millions (apparently close to 15 Million) loans that are at risk of falling into foreclosure, and few homeowners are going to be able to catch up.

And... if that first version of the program does not come into fruition, than something far worse than 2008 - 2009, is going to hit next. The wave of defaults & foreclosure inventory be so far and wide, that it's my personal believe that we will see home prices fall in some areas to values not seen since 2001/2002.

If that were to occur, you would have people who could willingly pay their loans, but decide not to anyway. Congress, once again, would come together, in my opinion, and formulate some sort of housing market/mortgage bailout.

My advice is personally this -- I've put all my mortgages that I can into forbearance, and I have been stashing the cash (the monthly payment) into a Savings Account. Since Mortgage Servicers are not reporting accounts in forbearance to credit bureaus - the ill effects of this are basically none. However, there are some significant upsides -- if these companies, or a new law goes into effect.

@NewbieFed, I think you should call Mr.Cooper and ask for copies of your loan modification agreement. I would bet that you have a "step rate" modification, instead of a revert to an Adjustable Rate. If this is the case -- your loan will adjust two a rate, two points above what you are currently paying, at a designated time. However... if your loan is simply converting back to a Adjustable Rate -- you need to ask, and understand what the Margin Is and... what Index the Loan is on.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
86
3
8
Thank you OHM. I'm wondering though, if this rate increase isn't based upon the current interest rates. If so, that would be a good thing for me. I really don't know the full details though. I do not think it will return to a adjustable rate. That would be insane. Especially with my mortgage and home being underwater.
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
Man has it been a long time..... I hope I'm wrong but I think things might be about to get real
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
They're doing a better job trying to prop things up this time around but it can only last so long. In Trumps exact words.... it is what it is