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Bankruptcies Going Up

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larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
I saw an interesting article on the internet from the Wall Street Journal regarding increased bankruptcies due to bigger mortgages. I don't know how to do a link for the Forum. For those of you more computer literate than me (it doesn't take much) maybe you can help out. Do I smell more foreclosure appraisals on the way?
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Heard the same thing on the radio program I listen to while crunching numbers. The call in financial advisor stated she believes that the major contributory factor is equity borrowing, without cutting up the credit cards to remove the temptation of over spending. (Repeat of bad habits, what we have been preaching here for a long time.) She said some of it is from predatory lending, but most of it is the consumer's own fault. :infinity: What's in your wallet? :eek:nfire:

Also heard that the fed. dropped rates due to not so good looking economic figures. I am already working overtime. :( Cuttin' hay while the sun is shining. :wink:
 

Terry Russell

Senior Member
Joined
Feb 24, 2002
Professional Status
Appraiser Trainee
State
Montana
Please correct me if I am mislead here, the result of filing Chapter 7, would result in an increased activity in distress sales and not actually immediate foreclosure. I believe that an individual filing chapter 7 is more than likely to keep their home or be given a chance to dump it before the trustee actually takes the house to sell to pay off creditors.
It is pretty rare that someone would get thrown out on the street because of credit card debt.
Now if the bank calls the note, then one may rapidly file Chapter 7 to buy? some extra time.
But am I correct in my thinking that the foreclosure is not a result of bankruptcy filing, Since the mortgage is secured with the property as collateral (so help the bank) It would not be included in with all the rest of the plastic debt. It is exempt from claim by any creditor excepting the lienholder.

Terry
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just because bankruptcy is filed, it does not preclude foreclosure. A lender can petition the court to waive foreclosure protection and unless the borrower can show that the debt can be paid, foreclosure proceeds onwards. The borrower can't be hit for losses, etc. but can lose the home.

Roger
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Only had 7 liquidation appraisals last month...5 already this month...can you say...."here it comes!"????

Last time the market was like this was in the 80s. We made lots and lots of money. Only problem is the added work (REO Form..recommended repairs) and six (6) comps...three sales, three listings.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
You need to quote six comp fees. :wink:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Unfortuately the fee is set by both the VA and Fannie Mae. Fannie's fee is $25 below the current URAR conventional rate. Guess they expect us to make the loss in volume.

I really hope they go after the appraisers who did inflated values. Most of these properties are really disasters. It appears alot was over looked.
 
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