Wednesday, October 03, 2007
Blaze of Glory
If you are gonna go down you might as well go down in style.
We see again the mortgage lates, NODs, NOTs, REOs continue to increase and lenders unwilling to refinance putting people even further underwater. If the lenders and their servicing agents think a workout is expensive just wait until they start getting entire neighnborhoods going striaght from performing to REO with absolutely no efforts by the borrowers to do anything except not cooperate. No late pays, no penalty payments to cover additional expenses just a balance accrual that willl make it impossible to break even. People do some amazing things when faced with crisis. A relative needed a transplant several years ago. They went to a financial advisor first. Their choices were lose everything and die early due to complications of poverty or spend it all on children and cars and misc qualified purchases and go on Medical and get the transplant and have wealth and lifestyle preserved. Some choice. We are about to see the same thing with a flood of housescapees.