CHESSNOID

The banks are still breaking foreclosure records and the inventory is growing.  I have heard references that it costs the banks between $30,000 to $50,000 per foreclosure.  That is a lot of money just to take back a house.  So why don’t the banks just modify the loan terms?

We bailed out the banks, we lowered interest rates down to 0% for them, and we even put aside billions of taxpayer dollars so the banks could begin doing loan modifications.  Why is there a failure to modify loans?

Bloomberg:  Loan Modifications Fail

“Federal programs have not been successful and have done little about declining asset values,” Quigley said. “The probability that a renegotiated mortgage goes into subsequent default is substantially high.”

Nevada had the highest foreclosure rate for the 35th consecutive month, with one in 119 households receiving a filing in November. Total filings dropped 33 percent from both a year earlier and the previous month, to 9,295.

Florida ranked second, with filings for one in every 165 households. California was third, at one in 180, RealtyTrac said.

Arizona, Idaho, Michigan, Illinois, Utah, Maryland and New Jersey rounded out the 10 highest foreclosure rates.

California had the most filings with 73,995, up 22 percent from a year earlier. Foreclosure notices in the most populous state have fallen on a monthly basis since peaking in July, according to RealtyTrac.

Florida had 52,935 filings, up 8 percent from November 2008 and 2 percent from the previous month.

State Data

Illinois was third with 16,422 filings, more than double a year earlier. They fell 18 percent from a record high in October.

Michigan ranked fourth with 15,988, up 10 percent from a year earlier. Arizona, Texas, Ohio, Georgia, Nevada and New Jersey completed the 10 states with the most filings, RealtyTrac said.

Filings rose 65 percent from a year earlier to 9,227 in New Jersey. They dropped 3.7 percent to 2,114 in Connecticut, and jumped 69 percent to 4,401 in New York.

Three California cities had the highest foreclosure rates among metropolitan areas with populations of 200,000 or more. Merced led, with one in every 83 households there getting a notice, five times the national average. Stockton was second at one in 85, and Modesto was third at one in 87.

Cape Coral-Fort Myers, Florida, was fourth with one in 96 households receiving a notice, and Las Vegas was fifth at one in 102, according to RealtyTrac.

Riverside-San Bernardino and Bakersfield, both in California, ranked sixth and seventh; Orlando-Kissimmee, Florida, was eighth; Vallejo-Fairfield, California, ranked ninth; and Sacramento came in 10th, said RealtyTrac, which sells default data collected from more than 2,200 counties representing 90 percent of the U.S. population.

I really wonder how this non profit group NACA is able to do so much more than our government efforts.  Where are the billions of taxpayer dollars going?  They have literally done loan modifications overnight with lender cooperation, and that is why literally thousands of people line up the day before at these convention centers.

Documentary: NACA’s “Save the Dream” – Mortgage Restructuring and Renegotiation Rescues Homeowners