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["Lynda" <lurine AT com-pair.net>]

Eldest's m-i-l is trying to negotiate a loan modification from Wacovia/Wells 
Fargo/whoever the heck they are now.  She got a letter from them saying she 
was denied based on 1) her mortgage was current and 2) she had shown where 
she had a loss in income.  Well, she showed the loss in income (two sons 
aged out and she wasn't getting SS survivor benefits for them anymore, a 
loss of over $1500/mo).  AND two days later they posted a foreclosure notice 
on her door!

So, my question was, how can you foreclose on a property where "your 
mortgage is current"?

Is it any wonder that banks are failing?

Lynda
----- Original Message ----- 
From: "Rob" <becida AT comcast.net>
> "60 Minutes" did a piece on the people 'walking away' from upside
> down mortgages, just a business decision. It was pointed out that
> several of the big money guys had walked away from big money projects
> when it was clear they were not going to improve their bottom line.
> This was to a large extent a moral vs money question, why pay a bank
> $2k a month for a property they could rent down the street for
> $500?  As a business decision it's the banks problem and would the
> bank care if it the problem was going the other way?
>
> Can it be just a business decision for the lender but a moral
> question for the borrower? It can if you can convince the borrower
> it's about morals rather than the bottom line.
>
> The bank owned properties with no for sale signs? There are several
> in my area.
> A couple of things I've read talked of bank bookkeeping, if the
> foreclosure process is put on hold part way thru it the property does
> not show up in the 'bad' column, or there are already too many bank
> owned properties for sale in a given area.
> Other things talked of the banks not knowing what to do as values
> readjust and people are out of work. If you don't have a job you
> can't afford to buy a house, at least not at the inflated prices we
> had yesterday.
>
> I keep waiting for land prices to 'readjust' out here, $7-10k and
> acre is nuts...
>
>
>
>
>
> Rob
>
> becida AT comcast.net
> Western Washington State, USA
>
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