Seattle Times Q&A on Foreclosures

[The Tim]

[jillayne]

Wow, there are already at least three wrong answers posted there. The question askers are asking the attorney questions that she doesn't know the answer to and there's another person answering the questions from a non-profit that clearly the attorney should be answering!

I bet they were hoping for questions from homeowners facing foreclosure and NOT questions relating to bank-owned REOs or buying homes at the trustee sale or loan mods.

Interesting.

[The Tim]

Speaking of foreclosures, when are we going to get to read a report of the courthouse auction you went to last week? Did you end up taking video?

[jillayne]

Hi Tim,

I just sent the attorney a tough legal question. Let's see if she decides to post it.

Regarding last week's auction, yes I had a great time, filmed a few of the trustee sales, met some people from NW Trustee Services, met three local investor group leaders and was invited to attend all three of their "informational meetings.'' However, the meetings are on Tuesday nights and I'm right in the middle of spring soccer season so no can do for now.

I did get confirmation that yes indeed, banks ARE discounting their own foreclosures and the opening bid on some of the homes is LESS THAN the amount owed. I think this is pretty big news but it's not getting much press. I sent the story idea to Aubrey last week.

I met a frequent SB commenter who shall remain nameless and who immediately came right up to me when I arrived and introduced himself. I have the video on my camera. Now I just need to download and edit it. For now, that project will have to remain on the back burner due to other immediate projects.

I'm going to use the film footage for a new class I'm writing.

If anyone wants to volunteer to help me edit it so we can get it up on youtube sooner, I'd be grateful for the help.

[The Tim]

Well they took your question, but mine (submitted just before noon) has not shown up, so I guess it won't (as expected).

Meanwhile, the question "are there many scam artists still?" gets posted. Gotta love the Times.

[jillayne]

The answers are getting better now and the attorney has corrected the HUD counselor's answers a few times.

[Everett_Tom]

[Civil Servant]

Wow, Tim, sorry to hear about your "fundamental misunderstanding of what caused the crisis" and your susceptibility to non-substantive reporting. That must be tough.

[david_mcmanus]

People didn't use their homes as ATMs? Wow, just......wow!

April 28, 2009 at 12:19 PM
Rating: (1) (0)
I am a real estate professional and bought a house for 700K that is now only worth around 400K (and falling). I purchased with an ARM that will not reset for another 3 years. Should I just walk away and not have to pay this? Can the bank do anything with the assets inside the house (tvs, stereo equipment, paintings, etc.) since this was all purchased through home equity?

Melissa Huelsman
Tue, Apr 28, 2009 1:13 PM
I suggest you contact your lender and see if you can negotiate something on your own. You could also seek assistance from a non-profit housing counselor and/or a bankruptcy attorney. Generally, the lender cannot go after your personal assets except if it initiates a lawsuit.

[jillayne]

If you google the attorney's name, you will see that she is a strong consumer advocate who sees clients that were victimized so it does not surprise me to see her blame Wall Street and lax regulations and victimize the poor homeowners because that's her world.

Even Dr. Shiller agrees with a part of her answer in that mass foreclosures are bad for communities.

Where her answer fails is seeing that falling home values actually helps rebuild communities by bringing home values back down to affordable levels. It's the bright side of the foreclosure mess.

[Everett_Tom]

[The Tim]

[Civil Servant]

Inicidentally, did anyone else think that the "I am a real estate professional..." question (quoted above by David McManus) was a prank? Something is a little whiffy about that one.

[Everett_Tom]

[david_mcmanus]

Maybe a husband / wife that share an account or stay logged on all the time with one computer? Then again, I find it doubtful that the husband and wife have opinions that differ THAT much.