Mortgage Times

[Adam in CO]

Originally Posted by mikejr

not a bad rate on a truck, thats a long time to be paying for it though. wow.

I just say an article in our Realtor trade mag that said the foreclosure rate on one particular type of loan is 14%, how can these companies that lend money and take these hits stay in business.....i think it goes to show you just how much money the banks are making!

14% is low for these lenders. They get a good percentage of their money back through the forclosure process and they need the remaining losses for Uncle Sam on the rest, anyway.

[mikejr]

i know that most of the f/c we do are on subprime loans and they get pounded on them. If i were to hazard a guess i would say the banks are recouping about 50% of the unpaid balance and even less once they factor in f/c costs, property preservation/management and eviction costs.

We've been seeing more and more high end homes going to f/c now. i've got a few million in high end home inventory right now when in years past we'd maybe have one or two a year.

[Adam in CO]

Originally Posted by mikejr

i know that most of the f/c we do are on subprime loans and they get pounded on them. If i were to hazard a guess i would say the banks are recouping about 50% of the unpaid balance and even less once they factor in f/c costs, property preservation/management and eviction costs.

We've been seeing more and more high end homes going to f/c now. i've got a few million in high end home inventory right now when in years past we'd maybe have one or two a year.

50% hurts. I'd bet it's more like 70% here.

[mikejr]

we just had a file recently that the bank just deeded over to some investor. The unpaid balance was about $50K, we had the property on the market for $20K and the unpaid taxes were $17K. This client wont close a deal with a negative proceeds so they just deeded it over to someone. So in this case, they lost 100%.