A reader emailed me with an interesting question about refinancing an underwater mortgage:
Do you think I can convince my lender to refinance my underwater 30-year mortgage to an underwater 15-year mortgage? Obviously another lender would have no motivation to take over a bad investment. But arguably it could be advantageous to my lender. They’re already on the hook for this bad investment and this way it would (probably) become a good investment much sooner. I of course would benefit from the cheaper interest rate and shorter term.
My specifics are below if you’re curious (though I think it’s an interesting question in general).
Remaining term: 25 years
Remaining debt: $490,000 ($410,000 6.0% fixed + $80,000 variable heloc)
Zestimate: $435,000
Lender: Bank of America (via Countrywide)
I haven’t heard of any banks that are willing to do refinances on underwater mortgages like that, although there are some programs out there that are intended to encourage banks to do so. The HAMP program in particular comes to mind, but that’s considered a loan modification rather than a refinance, and from what I’ve heard most banks are not exactly jumping at the opportunity to participate.
You would think that banks would be capable of making logical decisions that work in their own best interests, but their actions over the last few years have proven that not to be the case.
It would be advantageous to lenders to work with underwater borrowers trying to short sale their house, especially when they have a buyer lined up at market price, but instead most banks have been dragging their feet on short sales, repossessing the homes, and selling them for far less months (or even years) later as REO.
Perhaps we have some readers in the lending industry that can give us some additional insight here, but unfortunately I’m thinking that this emailer might be stuck with two choices: Keep paying on the underwater loan, chipping away at the principal until you owe less than the value of the home or throw in the towel and walk away.
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The big assumption here is that the lender is indeed the owner of the loan. In many cases the loan has been passed off to private investors or to the federal government via Fannie/Freddy, so the bank doesn’t care about the arguably better deal.
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From letter: “Remaining debt: $490,000 ($410,000 6.0% fixed + $80,000 variable heloc)
Zestimate: $435,000″
Too little information.
1. Is this a first and a second?
2. Is there any indication at all of what the property is worth? :-D
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RE: Kary L. Krismer @ 2 –
Yes Kary
Another unknown is the credit rating of the owner seeking a refi.
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RE: Kary L. Krismer @ 2 –
I think he is estimating that the zestimate is a rough indication of value ($435) so he is $55K underwater…all within the HELOC.
Assuming that the HELOC is also with B of A, and irrepsective of his credit, the deal seems to make sense to the bank. They are just swapping out debt packages. I tend to assume that if it’s a 15 year mortgage he wants, paying is well within his means, so probably not behind.
So the key question being asked, as I read it, is why would a bank not want to refinance the house if the refi reestablishes the buyers commitment to pay…and creates a shorter term to equity. The lending mistake has already been made…now is an opportunity to shorten the duration of the potential loss. Seems very clear to me, but I bet both regulation and cathartic operations at banks (with a clear an aversion to operational innovation) will prevent this.
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Who would buy the loan if there is no equity write off from the original loan? Are you are talking about refinancing the same amount of debt on a property worth a lot less now with a lower interest rate? What type is it ? FHA, conventional, etc? How would this be a good deal for anyone including the bank? Obama is pushing a new program that would hose the loan investors while the homeowner and banks get the breaks. Just another reason to vote for Obama……
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A 15 Yr Loan Vs a 30 Year Loan
Bear in mind, that the monthly payments are about 45% greater today on a 15 YR Loan, in comparison…..a huge amount.
http://www.bankeagle.com/new-pages/loanrates.htm
If the 30 YR loan was approved, but barely qualified [or even qualified with some elbow room]….I’d assume the 15 YR is likely/completely out of that owner’s ball park….especially for that Jumbo Loan amount.
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Assuming (dangerous, but for the sake of discussion it’s what has to be done), if the Zestimate is basically what the home would appraise for, a 720+ credit score, and that both the 1st ($410k) and 2nd ($80k) are with BoA, it is still highly unlikely a refi could be done.
BoA has zero motivation to help with a refi. If he can afford the monthly payments on a 15 year note, and if he has a 720+ credit score he obviously is keeping up with the existing payments. No other bank will touch a refi on that loan with a 10 foot pole, so there’s no competitive reason to work with the borrower, and they’d be giving up a lot of interest income in the mean time. I can’t think of any scenario in which BoA would want to help him refi given the information provided. Even a bank staffed with intelligent forms of life wouldn’t do it.
The only way I can see getting a refi done on that loan is to pay off the heloc first. Do that, and again assuming $435k for the value and the remaining amount owed on 1st will put you under 95% LTV, and under jumbo loan threshholds. At that point, especially with stellar credit scores, a refi to a 15-fixed, whether with BoA or another lender, would be a snap.
If he’s got an extra car, a boat, a bunch of stocks/mutual funds or some other fairly high value item he can sell and then otherwise seriously put the screws to his budget he could probably get that heloc paid off in a couple years. There’s a chance we’d still be in a sub 5% world for 15 year mortgages by then.
At the very least, if I were him I’d figure out what the 15 year payoff payments would be on the current loans ($4135/month total assuming 6% for all of it) and then just start paying that amount each month. Put all the extra principle on the heloc until it’s gone, then apply all that money to the 1st.
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Here is some good information:
I would highly encourage the homeowner to look into Freddie Mac Relief or Fannie Mae HARP Program HARP (Homeowner Affordability Refi Progam) or DU REFI Plus program. Loan to Values are greatly expanded up to 125%. Many homeowners refinance the existing 1st mortgage and subordinate the existing 2nd under HARP guidelines and most second lenders subordinate under this scenario either outright or with conditions. Contact your loan officer for more details or contact me for referrals to people we have worked with that have experience.
If you would like some names of local loan originators with experience give Rhonda Porter (rhonda@rhondaporter.com) a jingle or contact me at tim@legacyescrow.net. I have extensive experience with subordinating lenders (2nd mortgage holders) and work with both majors (B of A, Wells Fargo, Chase, CitiMortgage, PNC/National City, USAA and many others) and regional lenders all over the USA. We also work to get subordinations approved when declined and have about a 40% success rate which is very respectable in this market —had one declined at B of A last Friday and turned it into an approval.
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RE: Suitably Skeptical @ 4 –
Another Good Reason Not to 2nd Mortgage Your House
We blame the banksters and our corporate bought politicians for a lot of the banking mess we’re in, but guess what…..a lot of us spendthrifts 2nd mortgaging our families’ security should simply look in the mirror for the real crime lord and root cause of our economic mess.
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The Tim, something funky is going on with your editor. It is repeating statements. ;)
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RE: trucker @ 7 – If the bank refied both mortgages into one they also would lose their ability to chase the owner down the street for the second mortgage loss in case it went into foreclosure later.
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RE: trucker @ 7 –
I’m With You Trucker
The problem is, the rest of America only saves like 3-5%, RE: Household saving is defined as the difference between a household’s disposable income (mainly wages received, revenue of the self-employed and net property income) and its consumption (expenditures on goods and services). Mostly the rich elite keep the avg numbers even that high….so a middle income American is more like 0% or worse. We’re a country of spendthrifts.
http://www.gfmag.com/tools/global-database/economic-data/10396-household-saving-rates.html#axzz1YQVp4o1i
The rest of the world runs circles aroung American savers [see charts on above URL], but what the hades, they make most of the stuff and we’re the sheeple buying it.
The best thing this owner underwater can do, IMO, is hand the keys back to the bank or just keep making minimum 30 yr payments until the equity underwater get’s so bad, its time for a therapist and/or a good financial coach to keep them from their spendthrift ways.
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By Kary L. Krismer @ 2:
By Suitably Skeptical @ 4:
And MichaelB wonders why I use so many smileys.
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By Pegasus @ 11:
Which is why I said we needed that information. I don’t see the bank giving up that right for a promise of increased payments.
Perhaps rather than a refinance, what the person needs to ask for is a loan modification, on one or both?
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Let’s see . It costs about 10 percent to sell in Wa. Your upside down 150k. Assuming your payment is about 3k. It would take about 30 months to foreclose or longer if you attempt loan mods. About 100k in cash by the time the realtor comes knockin. Good luck to you but the answer to your question is readily apparent and you need to educate yourself about ALL the alternatives and do NOT kick the can down the road.
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By Ray pepper @ 15:
If the borrower could count on 30 months before being forced out of the house perhaps, but can’t it sometimes happen in less than a year?
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By badpelican @ 16:
And then you add 6 years to be sued, then 20 years for the time the judgment will be enforceable on the second, assuming the legislation doesn’t pass which will extend that 20 year period.
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“15. Ray pepper
September 19, 2011 at 12:36 pm | Permalink
Let’s see . It costs about 10 percent to sell in Wa. Your upside down 150k. Assuming your payment is about 3k.”
I fear you are wasting your breath and Good Intentions, Sir.
Sooner or Later you/me will probably get a rental application from this genius for one of y/our lovely little wealth generators down south. Most of them don’t get that concept either…
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I can tell you this with absolute certainty,being a homeowner who lost my home home back in 2009 to forclosure, there is no dealing with BofA mortgages that will help a homeowner. BofA is one of the worst, they dont want to help struggling homeowners at all.I would find a mortgage thru a credit union and not worry about being underwater if you want to stay in your home(everyone is underwater anyway!) or just walk away and start over.That is what i had to do, it is possible and life is so much better without the bank. CREDIT UNIONS are the only way to go now!
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The fact is he must know all his options. Strategic and non. Most loan modifications are kick the can down the road ifications unless they eliminate principle. Good luck in whatever you choose or get offered but remember you hold the cards and the deck. Not the bank!
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By Ray pepper @ 20:
They didn’t seem to be expecting a reduction in principle, perhaps because their financial situation doesn’t make that a likely possibility. There are actually people in this world that have a significant amount of income and assets.
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By Kary L. Krismer @ 17:
BTW Kary does the 20 year timeframe for the second applicable in all cases or if it was done as part of the initial purchase would different rules apply?
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By Ray pepper @ 15:
Wait, the “$500 Realty” guy is saying it costs 10% to sell?
3% buyers + 3% sellers commissions, + 1.78% excise tax = 7.8%.
10% seems like a lot of rounding, and you are assuming full commission – which seems counter to your business. It’s pretty easy to get even full service agents to take down the commission percentage.
Seller doesn’t pay points, inspection, appraisal, etc.
Not sure what I am missing. Still a pretty high cost, but not close to 10%. I sold my last place for 6.8%.
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RE: Kary L. Krismer @ 21 –
“There are actually people in this world that have a significant amount of income and assets. ”
Very True Kary but that can change on a dime. The value of this home and negativity WILL NOT!
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RE: deejayoh @ 23 –
Okay 7%. What about concessions? Work orders? Title? Escrow? Home Warranty for Buyer? Months it MAY take to sell if it even sells at all?
Come on Deejayoh! You have been around here long enough to know that. An educated homeowner with an UPSIDE down mortgage needs to know all the options they have.
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By Ray Pepper @ 25:
One of which is not paying 6% commission…
I thought that bore pointing out, and figured you’d be the man to do it.
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RE: deejayoh @ 26 – I wonder if Ray is thinking about becoming $15000 Realty?
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Whether or not someone qualifies for the Home Affordable Program (HARP) currently depends on WHEN the mortgage was securitized by Fannie or Freddie (this is different than the closing date).
To be eligible, the mortgages must have been purchased by Fannie/Freddie prior to June 1, 2009.
Also, if you currently have private mortgage insurance (including lender paid mi) — you’re pretty much stuck with your current mortgage servicer and BOA is notorious for not doing HARP’s when pmi is involved.
There is not a restriction for switching to a shorter term (amortized) mortgage as long as you qualify for the higher payment.
Good luck!
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To find out if your home is with Fannie or Freddie see links below:
Loan Look up for Fannie Mae
Loan lookup Freddie Mac
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By badpelican @ 22:
I suspect what you’re thinking about is the California rule where they treat purchase money loans differently. Washington has no such rule, AFAIK.
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RE: deejayoh @ 23 – Just over 9% is more typical for total closing costs w/ a 6% commission, but just to not disappoint people 10% is thrown around.
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RE: trucker @ 7 –
The notion is a great idea, hopefully not born from desperation. The problem, as stated by trucker, is that there is no incentive for the lender. The loan is fine from their end, with no competitive driver forcing their move. No where for private equity to go here either. The unfortunate reality is that we are not at bottom for two reasons. We have not reached a historical corrected Case-Schiller curve and building costs are driving upward pressure at exactly the wrong time.
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RE: don owen @ 19 – Don, credit unions will screw you too, given the opportunity… and they seem to play by different rules.
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RE: badpelican @ 16 –
The normal time frame is less than a year. 9 to 10 months…not 30 months. Anything longer than that is a happenstance, not a given.
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By Rhonda Porter @ 32:
They weren’t terribly good to deal with in bankruptcy. Between dealing with BoA and a credit union, I’d say it’s a toss up, but for different reasons.
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Facts: a) The guys owes $490k, house is worth $430k, so he’s nominally $60k under. Clearly he didn’t buy at the peak and suffer the 25% market-average decline, so he’s either owned since 2004ish or 2009ish. b) BofA will not work with him in any feasible fashion. c) The credit hit for jingle mail last 7 years and not a day more.
Were it me, I’d stick out the $60k loss, if only because that’s only about 15% of the value of the house, and the burden associated with foreclosure, moving, renting, and the credit hit wouldn’t be worth it, for my income anyways. Were he $100K or more in the hole, then I would walk, but I think houses are fairly near bottom, maybe another 10% left to lose, so I doubt he’ll reach that level of under.
Good luck, buddy. If you do walk, know that you’re doing it with 10s of millions of other americans, feel good about sticking it to the bank rather than yourself, and remember that there is life after foreclosure.
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By Kary L. Krismer @ 21:
By Ray pepper @ 20:
I’m pretty sure it’s spelled “principal” but since neither of you guys has any experience in Real Estate, I shouldn’t expect you to know that.
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RE: Hugh Dominic @ 36 – Ha! Unless they were both being ironic ;)
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By Compound Interest @ 35:
Hmm. I doubt your facts are correct. He has 25 years left on his loan, so he probably bought in 2006. I’m going to guess that he paid $620K for the house, put 20%, and then saw the value drop by 30% to where it is now. In other words he has already lost his ~$120k down payment still finds himself another $60k in the hole.
That sucks. But other than walking out of sheer spite, I agree with your conclusions. Given a strong income, the credit impact and not having a judgment hanging over his head is worth $60k.
Also the guys over at Zero Hedge are thinking that Obama is going to roll out a big new “Free 4% refi” campaign out to guys like him this Fall. They point to some signs that lead them to believe this – if you agree with their analysis you should wait and check your mailbox for the next few months.
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RE: Hugh Dominic @ 36 – RE: Hugh Dominic @ 36 –
and you do? Please tell us your wisdom Hugh. Instead of slammin and catching typos do you have something to bring to the table?
His assumption is that Zillow is correct with their estimate. I find them always to be high. Knock another 15% off and MAYBE he will be able to sell it. Don’t forget an additional 10% cost to sell either…
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RE: Ray Pepper @ 39 – My wisdom is in post #38.
I think there is some merit to what the ZH guys think will happen, and I would stick with status quo through the winter to see if it does. If so, he will get a free refi to a 4% interest rate, paid for and sponsored by the government. If that doesn’t happen, ask me again in the Spring.
I agree with some of the points you added in your second paragraph, but I think they are not as relevant to this discussion. In what we know from Tim’s blurb, the owner has not indicated any interest in selling or leaving the property. I know it is your religion to mail in the keys, but not everyone wants to convert.
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I was in a similar situation:
$380K remaining on 1st @ 6.75% (26 years remaining), $95K on 2nd @ 8.375%, home worth about $400K
We refinanced the 1st to a new 15-year mortgage last fall with a new lender @3.75%. Our current lender (at the time) was not at all competitive, so I recommend to shop it aggressively.
The mortgage was done through the Home Affordable Refinance Program (HARP) but that was scarcely mentioned by the broker or lender. That is all taken care of on their end. Just call up a good broker and give them your info and they can shop it for you. I found a broker through the Upfront Mortgage Brokers Association (they guarantee their fee up front) and was delighted with the result. You will need to have good credit and financial situation to qualify, as you would for any new mortgage these days. But the “underwater” part is addressed by HARP.
Changing to a 15 year raised our payment only a little since we lowered the rate by three whole percentage points. Now I feel like we are finally getting somewhere paying down the principal.
Now if only we could do something with that 2nd mortgage…so far I haven’t found anything, except throwing extra cash at it when we can.
Good luck!
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RE: Hugh Dominic @ 41 –
Has nothing to do with RELIGION. Some Loan Mods from the Regionals are outstanding because they drop the principle balance and give the homeowner an ability to sell in this decade if needed.
The rest are LEAD WEIGHTS forcing you to stay put and that simply does NOT work in our mobile society. Thus you become a can kicker and ENORMOUS Bagholder for many many years!
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A friend of mine has a 30yr loan held by a local credit union (i.e. it is not a freddie/fannie loan). His loan is 6.5%. His home is about 125K under water. LTV probably about 130-140%. I suggested he just walk away, but he doesn’t want to for ethical reasons (he can still afford the loan). His credit score is 720+ (probably 740+), he’s not behind on anything and has a decent job.
Because this is not a freddie/fannie owned loan, he doesn’t qualify for any of the government programs (HARP/HAMP etc.). He’s tried through a couple mortgage brokers who basically said there’s nothing they can do.
He talked to his credit union, but they weren’t interested to refinance or otherwise adjust the terms of the mortgage (unless he got behind, they had some financial assistance programs for those cases).
Anyone know any lenders/mechanism to help him refinance?
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RE: Ross @ 44 –
Assuming the Loan is More Than 10-15 Years Old at 6.5% Interest
Why would anyone refinance and add another like 30 year mortgage noose, even for a few hundred a month savings? The bottom line, add another time portion to your debt and the banks get more and more interest on a depreciating asset.
Pay that baby off quicker at 6.5% on the existing loan and don’t drag on the interest payments with refi. The risks on extra decades of debt are simple to imagine: sickness, divorce and/or unemployment.
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By Suitably Skeptical @ 4:
Suitably Skeptical is correct in all assumptions–BoA *owns* both the mortgage and the HELOC and no payments have been missed. My proposal is simply to change the terms of the debt so BoA recovers their loss more quickly in exchange for offering me today’s lower interest rates. The debt holder would not change. The principal would stay the same. Only the duration and interest rate change.
In response to other questions… 1st loan is a conventional jumbo. No PMI. Not Fannie/Freddie. Purchase price was $550k.
Hugh, thanks for the “mega refi” (Zero Hedge, WSJ) tip. Hadn’t heard of that before. But, like most of the HARP programs, it sounds like it will only apply to Fannie/Freddie/FHA. I’ll definitely keep an eye on it though.
Subrosa, was your loan government owned?
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RE: Hugh Dominic @ 41 – RE: Compound Interest @ 36 –
I agree to stick it out, depending on where the property is. Some losses will be based on properties that have no value, or very little value when compared to the purchase price.
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RE: Asker of Original Question @ 46 –
I really don’t see the problem or concern. If you can afford the 15 year mortgage payment then you should start doing that now, and buying down the principal balance. The rate would go down 2% tops on the first, and you would pay the refinance fees, that would be a wash for at least five years.
The second may be a problem but you will owe that money regardless what you do. You may be able to convert that to a fixed rate, that a bank may be willing to do because it can be stripped out in bankruptcy.
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RE: Subrosa @ 42 – regarding “upfront mortgage brokers” guaranteeing their fees upfront… with the creation of HUD’s 2010 GFE – loan fees are guaranteed by a certain tolerance (some third party fees, like title and escrow have varying tolerances depending on whether or not the borrower or the lender selected them). You do not have to go to an “upfront mortgage broker” to have this benefit… fwiw.
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RE: Asker of Original Question @ 46 –
So the bottom line is that the bank has a (2) performing loan. (s).
When presented with this argument that they would benefit from reducing their stream of income by modifying the existing terms the lender would have a different opinion. You are asking them to accept less income for the money they lent.
You are a “good loan”. Low risk because you are paying and have regular income and are paying your bills. This is the kind of deal that the bank wants to keep on its books as long as possible.
Highly unlikely the bank would see it your way in a sit down.
Better to pursue a refi on a gov’t program for underwater borrowers.
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By Asker of Original Question @ 46:
BoA doesn’t have any loss to recover (yet, anyway). They have a loan that is performing just like they hoped it would. It doesn’t become a loss until you quit paying and they repo the house.
I still see zero motivation for BoA to do squat in this case. It would be very nice if they would, but BoA didn’t get as big as they are by doing deals like you want done.
Pay off the second to get above water and then you’ll have plenty of ability to refi to a better rate, assuming rates are still this low by then.
You can hope for a .gov pacakge to help out, but I wouldn’t count on it being useful to you even if does pass Congress. If one comes along, great. But in the mean time start paying your existing loans like it’s a 15 year note, with all extra principal going to the HELOC until it’s gone.
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By softwarengineer @ 9:
No doubt in my mind the bankers, federal & state bank examiners, the ratings agencies, and the monoline insurers, should have been the adults in the room. One shouldn’t have expected home buyers, appraisers, realtors, investment bank securitizers, or the doofuses who bought the MBSs & CDOs to be adults. But guess what…they’re ALL to blame.
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By Asker of Original Question @ 46:
I’m not following. What loss does the bank have? Like Haybaler points out, you are a performing loan.
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the bank has a performing loan currently, however with shortening the term, the payment would be larger and increase the “debt to income” ratio which may be riskier for the bank
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RE: Ross @ 44 – I cannot imagine the logic behind a local credit union not wanting to work with a borrower that has an existing 6.5% loan. If they said sorry, I would continue to shop other local credit unions. I’m seeing 30 yr fixed rates around 3.875 to 4.25%.
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RE: S-Crow @ 55 – someone might have better odds refinancing a 30 to a 30 (reducing the DTI ratio)…and it doesn’t hurt to try… I see banks and credit unions do more things that don’t “make sense” than what would make sense to you or me or any logical person.
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“Recovers their loss” was a poor choice of words by me. But although it is a “performing” loan, it’s also a “risky” loan since the collateral has lost so much value. (I know it’s risky because we all agree no other bank would consider a refi and half of us think I should default on the loan.)
If the situation were reversed, I think I would be happy if a good (no missed/late payments) customer offered to pay off a loan more quickly in exchange for a lower (but market) interest rate because:
1. It would become a good loan (not underwater) more quickly. (Provided payments continue to be met.)
2. The customer would be more motivated to continue making payments because of the new lower, fair market, interest rate. (Even though the payment may be higher.)
3. A happy customer is far more likely to do business with me in the future.
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RE: Asker of Original Question @ 57 –
That’s just it, you already have the ability to pay off the loan more quickly.
You have made five years of interest income payments that the bank gets to keep. The second can become an unsecured loan. You are pointing out the first is close to value of the property.
Start paying off the first, or the second, it makes no difference really, but start getting those loans amortized.
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RE: Asker of Original Question @ 57 –
If it was that simple. Unless it is a portfolio loan, no bank will go for a voluntary reduction in coupon rate since your friend’s loan had likely been sold to either Fannie or Freddie and/or into some MBS and now the original lender gets about .25% per year for servicing it and would make more money should the loan go into a default. I have seen some mailers for 125% loans in the mail recently, but those likely come in high 8%s or better.
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RE: Asker of Original Question @ 57 –
OK. lets get to the bottom line.
You stood in line at BofA and read all of those posters advertising 15 year mortgages at 3.25%. and said “I want one of those”. –Problem is like Rhonda says You have to qualify for it at the time of application instead of the 6% 30 year deal. You can’t extort them into that deal after the fact.
You are essentially saying that because you can threaten to default the lender should accommodate your demand for a better deal in order to reduce potential losses if you default. We are all with you on that…
The lender says “I’ve got a good deal. I’m sticking with it because I can average my interest yield on all of my receivables as rates have changed and make a good looking financial statement showing my shareholders a reasonable return on invested capital. If I bent over every time a borrower demanded a recast or refi then my contracts don’t mean anything.”
That’s how that works. You signed on the line. They say “you can pay, we hope you continue to pay what you agreed to pay, it’s the right thing to do”…and besides we’ve got you by the b**** because you can’t go anyplace else.
Now, you get to decide what you are going to do.
One camp says “pay it off” because it’s in your best interest to do that….it’s just chump change in the big picture of your life.
Another camp says “strategic default” because it’s a declining asset and you can buy a place across the street just like it for less.
Heck, do your own version of a refi…. Hire an appraiser, it’s only $400- that’s chump change…. Tell him you are considering filing a BK and want to strip the 2nd off and you want the lowest appraisal he can justify with real comps. Be sure to point out all of the faults and flaws. You may be surprised at what he shows you the place is (n’t) worth. Then take that to an attorney. You’ll like your place a lot better when you owe $80K less and don’t have a bunch of credit card payments to make.
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By S-Crow @ 55:
Are you saying local credit unions would refi a loan that’s underwater?
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Until you stop payments, nobody will have any motivation to deal with you.
BoA is a mess, and they do take a long time to foreclose because they do not know crap about who owns what (especially with the stuff they inherited from Countrywide).
A friend of mine was foreclosed by a credit union (Boeing?) after only 3 months. His comment was: “if I would have been with BoA, I would have had a free ride for a couple of years”.
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By Cheap South @ 62:
Not in this state he didn’t. In Washington, the sale can only take place at least 190 days after the date of default.
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RE: Pegasus @ 63 – And even ignoring possible mediation periods, the basic process takes four months (30 days for the notice of default and 90 days for the notice of trustee’s sale).
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