Black Monday-Banks Forclose on All?

[LA Woman]

Can anyone confirm or deny this claim? Sounds like BS to me, but what do I know......

http://www.puredoxyk.com/index.php/2008/07/16/black-monday-2008-foreclosure-apocalypse/

Quote:

"Okay. "Black Monday" already happened, in the 80’s and then also back in the 20’s according to some slang-artists, but one of the attorneys I work with gave this last Monday (July 14 2008) the name, and it seems to have stuck.

You could also call it "Screw Everybody We’re Foreclosing On You All" Monday, if you’re so inclined.

In a nutshell, what happened is that Monday morning, all the major mortgage banks in the U.S. issued some kind of order or decree, that they would cease conducting any kind of workouts or negotiations with borrowers, and instead foreclose on every home they could."

 

[Hamlet]

The banks are trying to blackmail the government? It would be interesting if this can be confirmed.

 

[Terrel L. Shields]

Nonsensical...however, many many people find out that banks have the right to demand full payment of loans in many cases. This has happened time and again. Someone who is making all payments suddenly is told they have 30 days to pony up or refi somewhere else. Of course, in times like that, it is nearly impossible to refi...

Remember. A mortgage means someone else controls your property...

 

[The Warrior Monk]

The problem with doing this is that once they foreclosure on everything, they have to do one of the following:

1. Hold the property; or
2. Dump it.

If they hold the property, there are costs associated with holding it (hard money plus liability), as well as run the risk of the property be damaged while they hold it.

If they dump it while everyone else is dumping theirs, they going to have to take a huge hit on price, probably at a nice loss.

Remember. A mortgage means someone else controls your property...

To an extent. Problem is nowadays many people only have a tiny ownership interest (i.e., equity), if any, in their property.

 

[Greg Bell]

If the premise is a foreclosure is so bad that the lenders will work it out is a little silly.What you get when working out loans that are more than the value of the property is a few million squatters.Many lenders would be Better off taking the property and re selling at the market with someone that will make the payments , in other words , a performing loan...what a concept..

 

[Greg Bell]

The problem with doing this is that once they foreclosure on everything, they have to do one of the following:

1. Hold the property; or
2. Dump it.

If they hold the property, there are costs associated with holding it (hard money plus liability), as well as run the risk of the property be damaged while they hold it.

If they dump it while everyone else is dumping theirs, they going to have to take a huge hit on price, probably at a nice loss.



To an extent. Problem is nowadays many people only have a tiny ownership interest (i.e., equity), if any, in their property.

Yes ..a TAX DEDUCTIBLE loss.

 

[Lee Lansford]

Can anyone confirm or deny this claim? Sounds like BS to me, but what do I know......

http://www.puredoxyk.com/index.php/2008/07/16/black-monday-2008-foreclosure-apocalypse/

Quote:

"Okay. "Black Monday" already happened, in the 80’s and then also back in the 20’s according to some slang-artists, but one of the attorneys I work with gave this last Monday (July 14 2008) the name, and it seems to have stuck.

You could also call it "Screw Everybody We’re Foreclosing On You All" Monday, if you’re so inclined.

In a nutshell, what happened is that Monday morning, all the major mortgage banks in the U.S. issued some kind of order or decree, that they would cease conducting any kind of workouts or negotiations with borrowers, and instead foreclose on every home they could."

One more reason as to why it is appropriate not to believe everything that is circulating on the internet.

 

[Greg Bell]

Yes , like the stained black dress , drivel

 

[rcsone]

....was that "drivel" or "dribble"?..............best to all......rs

 

[Restrain]

There is something to this, in that most foreclosures are on the 1st Tuesday of the month. However, it's no great conspiracy, but rather that they have to have all their ducks in a row on Monday.