Bill Baldwin Gets To Keep His Home of 45 Years

Bill Baldwin Gets To Keep His Home Of 45 Years!!!!!!
Fri 21 May 2010, 15:21 0 Comment(s) Email article


My dear readers look at the article below about all the foreclosures to come. I am proud to say that my friend of 46 years, Bill Baldwin, will not join this list. He become unemployed over two years ago. He fell behind in his mortgage (A familiar story!). I helped him to fight a two-year battle with the lender. My strategy was to sue the lender in court. The suit would require them to prove that they actually owned the home loan. When the mass of foreclosures began, courts allowed lenders to use data from the electronic MERS system to prove ownership of a home loan note. Due to lenders submitting forged documents, false data, and incompetent data, courts moved to the point of requiring banks to provide documentary proof that they owned a loan. (As was the case for decades before the subprime mortgage fiasco.) This is difficult or impossible to do as loans are securitized and sold to many different investors. Bill's attorney laughed at me at first. He said that I was looking for some free money that did not exist. I insisted that he file the suit. I provided him with a large amount of case law from US District courts in Cincinnati and Cleveland, Ohio. The lender made a couple of half-hearted appearances in civil court in Houston, Texas. Bill then got a letter a couple of weeks ago. The lender had forgiven all back payments and proeprty tax payments. Late fees and legal costs were waived. Bill merely has to resume paying his $745 per month payment. I told Bill to insist on a payment reduction to $300 per month. I told him to continue with his lawsuit forcing the lender to prove ownership of the home loan. Perhaps some of you remember the classic Paul Newman film, The Verdict. Paul played a lawyer that everyone thought was finished. He perservered with a personal injury case after his client was offered what appeared to be a great settlement. Paul took the case to the jury. There was great suspense when the jury came back with its verdict. He won millions of dollars for his client! I felt just like the lawyer (Paul Newman) at the end of the film. Everyone thought I was stupid and did not know what I was doing. But once again in my life humble David (me) defeated mighty Golath (the bank). HOW SWEET IT IS!!!!!!!!!!!!!!!!!!!!!!!!




One in Ten Mortgage Borrowers Will Lose Their Home To The Bank
MAY 19, 2010
tags: mortgage crisis, real estate prices
by Michael David White

New Observations is forecasting that a minimum of one in ten homes with a mortgage today will be lost to foreclosure in the next two years and that this loss represents a staggering five-million-unit addition to inventory-for-sale.

A record high 4.63% of mortgages were in foreclosure at the end of March The Mortgage Bankers Association reported Wednesday. Much worse, a mammoth 9.54% of mortgages are 90-days or more past due.

Given cure rates are slim-to-nothing-at-all beyond a 60-day delinquency, in practical terms, all of these seriously-delinquent homes will be lost through a sheriff’s auction, a short sale, a deed-in-lieu passing title from borrower to bank, or some other variant of distressed sale. Amherst Securities Group in a Sept. 2009 report said of the cure rate: “The cure rate on 60+ loans has decreased from 66% in early 2005 to 5% in Q2 2009.”

What is obvious and apparent from the cure-rate chart (see above-click for a clear view) is that borrowers who miss a payment are giving up quickly. After two payments are missed, the mortgage is a goner. It’s a new phenomena and adds a serious risk of falling prices for those who currently own homes.

If 50 million homes carry a mortgage, and with 10 percent lost to the bank in the next two years, five million units will be added to the current for-sale inventory. The five million bank-repo homes works out to about 10 months of sales at an average rate. Amherst estimated 7 million liquidations to the bank, but it was unclear over what period of time. The numbers will have even a more exaggerated impact if mortgage-payment performance continues to fall.

Current inventory is at eight months. The recent inventory high was 11 months in April 2008. Our figures already show current supply for-sale at 3.6 million units – which we have estimated is excessive by over 900,000 units (see chart “Units For Sale”-click for a clear view). In an average month 500,000 existing homes sell.

In another derogatory sign, purchase applications fell 27 percent to their lowest point since May 1997. A government-paid down-payment program ended April 30th.

The guesstimate that one-in-ten mortgage borrowers will lose their home is not a wild proclamation. It’s basic math based on the cure rate. What is wild is considering what will happen to real estate prices should mortgage failure gain greater momentum. Serious delinquencies are 30% greater today than a year ago.

A crash has the same irrational exuberance as a mania, except that greed is liberating and fear is terrifying. We have already lost 30 percent of house prices nationwide. There is simply no question that a radical loss in value may still lie ahead. Mortgage performance has gone down hill, and only a strong employment recovery can change the math.

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PRINT — One in Ten Mortgage Borrowers Will Lose Their Home

On the mortgage-payment data see also Calculated Risk.

Thanks for carrying the story to Business Insider, Jesse’s Cafe Americain, Mortgage Lender Implode-O-Meter, Patrick, Yahoo. Please forward questions, corrections, and reactions to comments below or send me an email. Please send an email if you would like to take out a new mortgage. mike@mynewmortgage.com

Michael David White is a mortgage originator in Chicago.

Topics: home loan foreclosures