Wow, foreclosure activity when wacko this month. I’m not sure what to make of if it. Here’s the chart.
NODs ended up at 567, down from 578 in October and 729 in September. NOSs rose to 715 from 578 in October and about equal to the 725 in September. We’ve come close before, but never in Washoe County history have NOSs exceeded the NOD count, and this was a significant margin. Any guesses on where TDs ended up? 225, down from 376 in October and 313 in September and to their lowest level since February.
Is this the effect of the MERS and Robogate "problems" hitting our market? Hard to say. NODs, NOSs and TDs all require notarized signatures in Nevada, and the "show me the documents" defense has been thrown out by the courts here in at least 10 cases I know of. Here’s another one that just got filed by a law firm that ought to know better since they have lost so many similar cases in the past. I think it represents the quality of most of these delaying suits that are being filed to try to postpone foreclosure. This poor homeowner bought 1036 War Bonnet in IV in June 2000, 1047 War Bonnet in October 2003, and 1048 War Bonnet later in October 2003 (duplexes, so a total of 6 units). In total, the owner has racked up 23 mortgages, refi’s and HELOCS on the properties and is now claiming the bad banks engaged in predatory lending practices on the poor unsuspecting borrower. She didn’t even bother to file for mediation under the NV program on 1047 War Bonnet, the property named in the suit. But every month she can delay foreclosure, the rents keep coming in.
My take on Robogate is that the industry got ahead of the laws and should have worked to change them, but no harm no foul. The laws and procedures need to get updated to reflect reality. Same with the fuss about MERS, though I take some pleasure at them getting hammered since their system was specifically engineered to screw the counties of recording fees. No one is claiming that people who shouldn’t have been foreclosed upon got caught in the system (though there will always be a few such cases), just that the process was icky and ignored. Fine the banks? Sure. Give the house back to the defaulter who is working the system? Not a chance.
Sully
Mitchs’ list today had 3 new listings out of 16. The rest were price reduced or back on market. This trend has been going on for a week or two. Few new listings and a whole lot of price reductions. Something is in the works. Beginning to look like a clearance sale. Apparently, the banks know something the rest of us will have to wait to find out!
Melissa Davis
Mr. McGonagle, As a long time reader of this blog, I have never posted before because for the most part I agree with most of what you, or other bloggers have to say. However, in the instance of you saying “ho harm, no foul” in terms of the robosigning dilema I respectfully disagree. There is an overwhelming amount of evidence coming forward that during the big push between 04-07 of private label RMBS which the predatory subprime loan machine fed, the lenders did not do the proper transfers of notes and deeds of trusts to the trustees of the REIMT pursuant to pooling and servicing agreements. What does, or could this mean? Well according to lawyers all accross the country, it could mean extremely serious issues with real property titles, and a whole lot more pain for the housing market. While I agree that if it were just limited to the incompetency of the servicers and the Robosigning issue then it would most likely end up a no harm, no foul, however, as more and more documents are coming out it sure does seem as if that just isn’t the situation. And it seems as if the Robosigners may have been the solution for a while to push all that slop through without anyone looking too far into the behind the scenes documents. And it is also most unfortunate that there are many people who are foreclosed on through servicer fraud and abuse when it comes to applying payments, charging late fees, and other servicing industry tactics to generate fees for them. Overall, it is beyond disturbing. If you want to know exactly how disturbing check this out http://financialservices.house.gov/Hearings/hearingDetails.aspx?NewsID=1376 and then let me know if you think its a “no harm, no foul” situation. Best regards.
Raymond
Can anybody refer me to one case, anywhere, where the persons foreclosed upon were not in default on their loan?
One case? Anywhere in the country?
One case, anywhere in the country, where people who were current on their mortgage were fraudulently foreclosed upon?
Smarten's Vanishing Equity
Raymond said:
“Can anybody refer me to one case, anywhere, where the persons foreclosed upon were not in default on their loan?
One case? Anywhere in the country?
One case, anywhere in the country, where people who were current on their mortgage were fraudulently foreclosed upon?”
Sure. How much time do you have? There are thousands. How about a house that never even had a mortgage with B of A, and they foreclosed on it?
http://www.associatedcontent.com/article/2710895/bank_of_america_forecloses_on_home.html
Norton
I think your comment is totally unresponsive to Raymond’s question, Smarten. His question is if there one case where PEOPLE WHO HAD A MORTGAGE UPON WHICH THEY WERE CURRENT were foreclosed upon.
This story you link did not involve anybody WHO HAD A MORTGAGE. It was obviously a case of a very bad mistake but did not at all involve the situation Raymond inquired about.
And also, Smarten, you say there are “thousands” of such cases. What is your authority for that statement? Please provide a link.
Norton
Excuse me Smarten. I apologize for mistaking the comment to be from you. I see it is from that Smarten’s Vanishing Equity guy, whoever that may be………
bob_c
Norton 1 SVE 0
Sully
In researching that link by SVE; it seems the whole thing was a comedy of errors. I’m surprised the owners are only asking for 1.5 million; seems like using a BB gun to attack an aircraft carrier. 🙂
MikeZ
Can anybody refer me to one case, anywhere, where the persons foreclosed upon were not in default on their loan?
One case? Anywhere in the country?
One case, anywhere in the country, where people who were current on their mortgage were fraudulently foreclosed upon?
Yes. Google “Jason Grodensky.”
… or: http://www.bloomberg.com/news/2010-10-08/man-who-had-no-mortgage-faced-foreclosure-anyway-ann-woolner.html
Smarten's Vanishing Equity
Are you just lazy, or are you stupid, Norton? Here’s another one for you. Simply use Google and find THOUSANDS of cases.
http://www.pressdemocrat.com/article/20100718/ARTICLES/7181039
Smarten's Vanishing Equity
“And as more and more consumers default, confused banks occasionally find themselves foreclosing on the wrong house.
That’s what happened to 46-year-old Pittsburgh resident Angela Iannelli, who came home last October to find her front door padlocked. Once she finally got inside — with the help of a bolt cutter — she discovered that her house had been ransacked, power and water lines had been cut, floors and furniture had been damaged, and antifreeze had been poured in sink drains and toilets.
As Iannelli later discovered, Bank of America incorrectly identified her property as vacant and in default, and sent in a contractor to lock and clean out the house.”
http://www.consumeraffairs.com/news04/2010/03/bofabird.html
GALVESTON — A West End property owner is suing Bank of America Corp., asserting its agents mistakenly seized a vacation house he owns free and clear, then changed the locks and shut the power off, resulting in the smelly spoiling of about 75 pounds of salmon and halibut from an Alaska fishing trip and other damages.
http://galvestondailynews.com/story.lasso?ewcd=4e1cfb1bebbf31e1
TUOLUMNE, Calif. — Nancy Willmes paid cash for her Tuolumne home in 2001. So she was quite surprised when Bank of America send her a notice of default on the property in February.
“I honestly felt like Bank of America was trying to steal my property,” Willmes said.
She contacted Bank of America to try to find out why the bank believed it could foreclose on property she had purchased outright.
Willmes has chain-of-ownership records, which show Bank of America had sold the property to Fannie Mae years earlier. Fannie Mae foreclosed on the previous owner, and Willmes purchased the property with cash from Fannie Mae.
http://www.kcra.com/r/23688124/detail.html
WHEELWRIGHT – A Wheelwright man has filed a lawsuit against Bank of America, alleging agents working for the bank repossessed his home by mistake and refuse to pay for any damages other than the replacement of locks.
According to court documents, Christopher Hamby arrived home on Oct. 5 to find the locks on his doors changed and physical damage to his property from winterization chemicals placed in the plumbing and various lines cut at the residence.
Hamby said that he does not have a relationship with Bank of America, including any type of mortgage agreement, and that the defendants had no legal right to come on his property.
http://www.floydcountytimes.com/pages/full_story/push?article-Man+sues+after+bank+takes+wrong+house%20&id=4217211
Smarten’s Vanishing Equity +5
BobC +0
Norton -1
kvp
@ Sully, what is Mitchs’ list? Could you provide a link? Thanks.
Sully
http://www.freenevadamove.com/reno-foreclosure-homes.php
There once was a place to sign up for daily email alerts, but I couldn’t find it. You can probably email him and he will add you to the list.
smarten
No who else on this board [“are you just lazy, or are you stupid, Norton?”] is as rude and condescending as Mr. BB? Kind of pathetic Mr. SVE, don’t you think?
And since you’ve brought up the issue of stupid people, I feel turnabout is fair play. According to Mr. SVE, “I just took a look at IV listings and I’d guess that, if Smarten was looking to sell today, he’d be lucky to get $1M for his place. That would represent a loss of, what, $500k?” Let me suggest that the best way to determine if there has been a change in a particular property’s FMV over a certain period of time [here 14 months], is to have two sales; one at acquisition, and the other over that particular period of time. Given that doesn’t happen too often, what’s the next best way to determine a change? I submit it is to have two appraisals of that property; one at acquisition, and the other over the particular period of time.
As Mr. BB knows, I have been going through the refinance process [BTW, 3.75% fifteen year fixed FWIW]. When I purchased about 1-1/2 years ago, I required purchase money financing. So my lender ordered an appraisal and the home’s FMV came in at a little over our purchase price. Now 1-1/2 years later my new lender has ordered an appraisal and guess what? FMV came in at essentially the same dollar amount. So sorry to burst your bubble Mr. BB, but: I guess I just made the $500K you’ve stated I lost; and, who exactly is the stupid one?
Smarten's Vanishing Equity
Still obsessing over BB, huh Smarten? My comment to Norton was in all seriousness. Is that how lazy people have become? That they cannot even spend one minute searching for the truth before they post such nonsense?
Since you want to, yet again, derail another thread to talk about your special house which is immune to market forces, I’d advise you to look at the large variety of Incline Village houses for sale, which are superior to yours (larger lots, larger houses, better locations (golf course)) and asking quite a bit less money than you paid, many of them not selling. Alas, I fully expect you to remain in your deluded state until your death, or at least until such time when life’s circumstances dictate you get religion and sell at a magnificent loss. Ignorance is bliss. Enjoy!
MikeZ
I have been going through the refinance process [BTW, 3.75% fifteen year fixed FWIW].
Awesome rate.
Now 1-1/2 years later my new lender has ordered an appraisal and guess what? FMV came in at essentially the same dollar amount.
Nice. Very nice.
lurker
Is MikeZ really Smarten?
Never really thought it was a legitimate question until the above post. If not, maybe they know each other, and MikeZ works for Smarten. I don’t think it’s a crazy hypothesis.
bob_c
lurker–
the internet, anonimity, and darker human nature have infected most
web sites with soap opera and behaviors no-one would ever admit to
smarten
Don’t mean to burst your bubble lurker but no, I have no affiliation with MikeZ. Nor have I ever met him. Sorry if this explanation/clarification isn’t good enough.
MikeZ
Yeah, smarten and I am the same person and Bantering Bear is not really smarten’s “vanishing equity” stalker … even though both have used the same 3 distinct forms of speech on this blog, found only in the their replies.
Yup, you figured it all out, lurker.
Curious
Smarten,
I’m just curious. What does it feel like to have $7,000 a month PITI payments? 15 year mortgage for a guy in his 60s. Won’t be done paying until you are almost 80 years old.
No disrespect here, but is it really worth it?
lurker
Nice point. if I had $7k/month, hopefully I’d be traveling alot and giving the rest to my grandkids. These days, $2k/month can buy you plenty of comfort in the greater Reno/Tahoe area, and you’d have plenty of time to drive up to the Lake if you need to.
Fair enough. MikeZ may not be Smarten. He’s just an insultory butt-kisser.
Smarten's Vanishing Equity
“Three distinct forms of speech.” Ooooooooohhhh. Ladies and gentleman, we’ve got a multi-talented kiss@ss here! I mean, somebody said MikeZstalker was an engineer, but apparently he’s moonlighting as a linguistics expert and internet sleuth! NOT. Stick to what you’re good at, stalkerboy, like inserting your nose as far up Smarten’s rear end as you possibly can. Perhaps he’ll even turn around for you.
The real question regarding the savviest buyer Incline Village has ever seen is why, after making such an impressive purchase, he would spend his days holed up on a computer defending its imaginary value to people he doesn’t even know. Maybe he can’t afford to leave?
Lurch
Maybe the real question is why some out of state petunia farmer is even more obsessed with smarten than smarten is.
smarten
Curious –
I don’t have a $7K/month mortgage payment and NEVER would do such a thing; especially at my advanced age. My words of wisdom to all are what someone very close to me shared 35 years ago. One should never work for real estate, real estate should work for you! Believe me, I’m not working for my real estate regardless of the monthly mortgage payment[s] you/others may speculate I have. Maybe it was a mistake on my part but 1-1/2 years ago when I shared what I did on this blog, I represented that I had a plan; and I did. I’m now in the final phase. Because I don’t want to jinx anything, I’m not going to go into any details. But trust me; I’m almost there. And yes Curious, it’s sooooo worth it! Every day I wake up and pinch myself; can I really be living here? I’ve traveled all over the world. I could be living essentially anywhere I want. And for me, I’m where I want to be. Every time I drive into Incline Village from Kings Beach and make the curve around Crystal Bay [watching the water glistening, the crystal blue skies, the snow capped mountains] I say to myself: if you lived here, you’d be home now. Three weeks ago we watched nearly six feet of snow fall around us – it was magical. Two weeks ago we had a powder morning, and it was November! This afternoon we went into the forest and cut down our beautiful 15′ Christmas Tree [the cost for the permit was $10]. Snow is on the forecast for this evening, so tomorrow morning we’ll be on the slopes. And I’m guessing, we may actually have a run or two or three or maybe all day [because it’s mid-week when most people work] all to ourselves! Could we experience any of this in Silicon Valley? How about Los Angeles? Reno? So yes Curious; it’s so worth it!
People like Mr. BB and SVE [assuming they’re not one in the same which as you know I don’t assume] look at a bunch of numbers and images on a computer and start making far reaching conclusions as if they really knew what they’re talking about. I’m here in the trenches. All markets are different, and there are generally markets within markets. You do your due diligence and hope for the best. And sometimes, things just work out. Ask Donald Trump. The last year and a half or so has been one of the best times to buy real estate in most of our lifetimes! Years from now Skeptical, Mr. BB, Insane Economist and other naysayers on this blog will be looking back and kicking themselves in the rear for not having taken advantage of the many opportunities most of us could have acted upon, but so few did.
Curious
$900K at 3.75% for 15 years is $6,858 a month for P&I.
Taxes on Smarten’s house are $11,700 a year.
Insurance is about $200 a month, more or less.
Closer to $8,000 a month. Is is worth it to be paying almost $100 grand a year, Smarten?
Just Curious.
smarten
Curious –
Another friend once told me don’t assume; because it will make an ass out of you and me. Well with all due respect, I’m not the ass here. Either believe what I’ve said or don’t; it’s your choice. And no I don’t have a hand held electronic device nor compute from a chairlift. Have a good evening!
RRB Historian
The biggest mistake Smarten ever made was when he came on the blog bragging about his purchase, and in the process handed out enough information for everybody to ascertain who he is and where he lives.
We can all figure out how much he is paying. Mortgage amount, interest rate, taxes, IVGID fees, all public information.
I can’t imagine being that kind of debt slave in my 60s, but then that’s just me.
smarten
RRB Historian, you’re right I may have made a mistake in sharing personal information with this blog [as opposed to “bragging”]. But I was on this blog for more than two years before. Think you know everything about everybody and you can easily figure out how much their housing costs total? Well now I will quote someone else [President Bush ’41]: “watch and learn.”
You keep checking the public record to see what gets recorded. And when it does, go through your “easy” computations [since that turns you on] so you can accurately report what my housing costs are after the refinance. At that time we can revisit the question of who knows what and exactly who is the slave?
Curious
oohh Smarten, has a tender nerve been touched?
Smarten, nobody has ever said that “we think we know everything about everybody and can easily figure out how much their housing costs total.” We just know about you.
We have no doubt that once you refinance you will be the first here to let us all know about what a great deal you made.
skeptical
This one is for Raymond, and follows up and bolsters SVE’s and MikeZ’s retorts. Fact is, the issue of unblemished homeowners (some without a loan) getting mistakenly foreclosed upon seems to be becoming more and more common.
Moral? The corporations running and ruining our country need to be brought to account:
http://news.yahoo.com/s/ap/20101208/ap_on_bi_ge/us_foreclosure_wrong_people
1) Christopher Marconi was in the shower when he heard a loud banging on his door. By the time he grabbed a towel and hustled to his front step, a U.S. marshal’s sedan was peeling out of his driveway. Nailed to Marconi’s front door was a foreclosure summons from Wells Fargo, naming him as a defendant. But the notice was for a house Marconi had never seen — on a mortgage he never had.
2) Tom Williams was in his kitchen thumbing through the mail when he opened a letter from GMAC. It informed him that the bank would confiscate his house unless he immediately paid off his mortgage balance of $276,000. But Williams had never missed a mortgage payment. And his loan wasn’t due to mature until 2032.
3) Warren Nyerges opened his front door in Naples, Fla., to find a scraggly-haired summons server standing on his stoop. He plopped a foreclosure notice from Bank of America in Nyerges’ hands. But Nyerges had paid for his house in cash. And he’d never had a checking account, much less a mortgage, with Bank of America.
4) Angela Iannelli…was up to date on her payments when, she says, she arrived home in October 2009 to find that Bank of America had ransacked her belongings, cut off her utilities, poured anti-freeze down her drains, padlocked her doors and confiscated Luke, her pet parrot of 10 years. It took her six weeks to get the bank to clean up the house.
5) Maria and Jose Perez of Seguin, Texas filed suit in October after Bank of America sent them a notice that their house was scheduled for a foreclosure sale Nov. 2. The couple say they are current on their mortgage payment and they have no loan with Bank of America. A trial is set for June 13.
“This is the worst I’ve ever seen it,” says Ira Rheingold, an attorney and executive director of the National Association of Consumer Advocates. Diane Thompson, a lawyer with the National Consumer Law Center, has defended hundreds of foreclosure cases. “In virtually every case, I believe the homeowner was not in default when you looked at the surrounding facts. It is a widespread problem throughout the country.”
Homeowners in Florida, Nevada, Texas and Pennsylvania have filed lawsuits alleging that they were victims of mistaken foreclosure. In many of those cases, the bank went so far as to haul away belongings and change the locks on the wrong homes.
‘Nuff said.