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Banks Delayed Foreclosures To Influence Dodd-frank

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glenn walker

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Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Long before doodle & frank - when I worked for savings and loan we had non-performing loans that were not reported for years because it screws up your books and then the Feds start sending in auditors to see how much longer you will be solvent. During the mortgage meltdown of 2008 I knew guys that lived-free for 2-3 years without making payments because nobody wanted to report how many non-performing loans they had. Nothing new Banks report non-performing loans only when forced to.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
Long before doodle & frank - when I worked for savings and loan we had non-performing loans that were not reported for years because it screws up your books and then the Feds start sending in auditors to see how much longer you will be solvent. During the mortgage meltdown of 2008 I knew guys that lived-free for 2-3 years without making payments because nobody wanted to report how many non-performing loans they had. Nothing new Banks report non-performing loans only when forced to.

i had a few friends who did the same - lived in the house without making payments for months on end, some for years. i just figured it was cheaper for the bank to let them live there and pay the utilities vs going through the physical repossession process. at least that way the pipes would not freeze and burst in the winter.
 
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
i had a few friends who did the same - lived in the house without making payments for months on end, some for years. i just figured it was cheaper for the bank to let them live there and pay the utilities vs going through the physical repossession process. at least that way the pipes would not freeze and burst in the winter.
Wow, we have at least one of those in our neighborhood too, finally foreclosed after SIX years of owner occupancy rent-free. Was THAT the reason the bank didn't foreclose in all that time? Could there have been other reasons they did not foreclose? Lost deed or some other nonsense?

Also, we are going on two years of bank maintenance but it is not on the market... what's that about? We aren't seeing tremendous gains in sale prices here. It can't be financially beneficial to them to have $600K tied up in a lead weight.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
Wow, we have at least one of those in our neighborhood too, finally foreclosed after SIX years of owner occupancy rent-free. Was THAT the reason the bank didn't foreclose in all that time? Could there have been other reasons they did not foreclose? Lost deed or some other nonsense?

Also, we are going on two years of bank maintenance but it is not on the market... what's that about? We aren't seeing tremendous gains in sale prices here. It can't be financially beneficial to them to have $600K tied up in a lead weight.


not sure about your first point, i was only making a guess as to why they let him stay rent free for so long.

for the second? again, just a guess, but it probably helps their bottom line keeping the property on the books to offset profits from other avenues.
 
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