Wow, I actually read your complete post and think I understand what was said. Not because you can't write. I think you need to build a basic vocabulary and grasp of the process involved.

Historically it seems certain states have made it easier, sometimes far easier, for the FC process to work? My guess would be it is rooted in the structure of economic power? TN is probably a state where landed interests over time have made it possible to be done quickly? Perhaps dating from post civel war era?

Also, in this period of 200 +/- days the owner has been evicted? Possibly when the notice is posted? Then does the upkeep price fall on the agency?

A timeline would be good for something like this.

Tanta,
Nice
Thank you.

NYC has their own timeline, separate from the rest of the state of NY.

I thought I read at HW the other day that Freddie was "eliminating" timelines? Is all this fuss about them just extending some?

It seems like Mish's worry is that any delay in a foreclosure is a delay in mark-to-market calculations for the value of the MBS the loan is packaged in. Whether the house is actually "foreclosed" on or not aside, the loan is still an NPA.

So, I guess his real question is, how do delays in foreclosure actions affect delays in MBS revaluation?

Mish is pushing a agenda of Austrian Economics.

Austrian School - Wikipedia, the free encyclopedia

Tanta is on fire this mornin. Better bring your A game!

(Excellent post)

.............

Misean, it is a mental disorder my friend. Don't be surprised if one day you will be reading on this blog how Dick Cheney conspired to destroy these 2 great organisations.(F&F)

I don't understand those oppose changes to slow down the foreclosure process. Ok - they're opposed to anything government - they're libertarians I guess. Let them foreclose on everyone and watch housing prices collapse until everyone is broke. They believe in punishment for stupidity no matter what the cost. I call that throwing out the baby with the bathwater, but they are entitled to their opinion.

Still, I tend to think the problem that created this bubble was the unregulated shadow finanical system. It abandoned all reason and responsibility in the pathological pursuit of profit. The GSE's did not, as near as I can tell, throw money at IndyMac, WaMu, CFC, etc. saying, "Please lend this money to subprime slime so we can rake in massive profits on the bonds. The GSE's did not payoff appraisers. The GSE's did not make loans on 1100 sq ft homes in CA for $650,000 to people with no income. The GSE's did not create perverse incentives to allow mortgage brokers to charge folks subprime rates even if they qualified for prime.

Kill the GSE's if you want, but replace them with what?

Paul, as one who has strong libertarian proclivities, I should tell you that I, for one, don't think "killing the GSEs" is feasible, let alone optimal.

I do think that they need stricter captial requirements, and that there should be a push to follow the FHLB model so that lenders have more vested interest in the performance of the loans that they originate & service.

If someone knew how to game the system, how long could they stall the foreclosure /eviction process? I realize it would vary from situation to situation, but I'm guessing there are ways that most people are in ignorance of. I'm not asking for a detailed list (don't really want to "encourage" the behavior) but I have seen foreclosure "postponements" and wonder what the heck is that about.

sdtfs - by far, the biggest 'postponement', from the borrower's side of the equation, is filing bankruptcy.

Among active fcls, I show only 7% of loans currently are beyond Freddies timeline in Maine.

Of course, if a few are way over the timeline (because of muliple frivolous bk filings or whatnot) that can skew the average. Which is why it would have been enlightening to include the median as well as the mean in that Freddie research paper.

pjfny:

in claiming that tanta missed the big picture, you miss the big picture.

the big picture, as you so well state, is that Fannie/Freddie are explicitly our (the taxpayer's) problem now. thus, our desire should be to reduce their financial losses.

Fannie/Freddie have just found the sweet spot that should reduce losses. And thus they've set up the standard as such.

therefore, this is a "good" thing as it will reduce taxpayer liability.

of course we all wish we weren't on the hook... but that's magical thinking, sorta like how I wish I had Jedi powers, then I could mind bend you into making sense.

I just read Mish's posting. Once again all this concern about freeloaders gaming the system... It all just seems like an excuse to do nothing. I understand the impulse - we all get off on self-righteous indigation - but it seems disconnected from the danger to the larger economy. Sure - lots of people used the easy money tools provided by Wall Street and made bad investments. Like wtih any "program", some undeserving will take advantage. How many more people have to go bankrupt or get forclosed before we will have punished our society to their satisfaction? Just give me a number.

Thank You Tanta. I was not getting my head around this at first and your post really helped. Thanks for not dorking around!

Ok, since you mentioned Florida. . .

Yeah, our court system didn't have enough resources BEFORE they made the recent cuts to the system to balance the budget, but. .

Mostly the delay is due to incompetent foreclosure mills. Not that I'm complaining because I often delay foreclosures.

You can file a foreclosure anytime you want and the complaint is there the day you file it. It hits the electronic docket shortly after.

Then you have to wait and see if there is a response--20 days. Then you have to file summary judgment. Usually you can get on the Motion Calendar (in Miami-Dade, the smaller counties don't have motion calendar), in a week theoretically, but I've found it's better to give the system 10 days to 2 weeks. Then it's set for sale about a month later, then Certificate of Title 10 days later.

My foreclosure defending began many years ago when a person or 3 a year convinced me that money was coming in and the mtg company just didn't believe it. In fact, in every single case the money did come in. In one case it wasn't enough, and the house was lost. This was total, umm 10-15 cases over the years. Do I feel guilty about dragging these out? Absolutely not. One of them took a year for the money to get in, but everybody got paid, and in my opinion the foreclosure mill should have asked for more money; I wouldn't have fought it, but the didn't.

Part of it was my revenge for the horrid way all borrowers were and are treated by the lenders, good and bad credit, rich and poor, people with connections within the lender (such as a close relative in the branch of the lender) or none, virtually everybody got uniformly awful service. Lost papers, more and more unreasonable demands, even in the days of email, they'd claim they lost the email. . .

Ok, now we come up to today. There are still a couple of people, that I expect will be brought current. In fact, I closed one last week. She only owed 62k on a house that is worth 140k. Absolutely no help was offered. Nice 2/2, on a water view with a wood deck. Lady lost her job for a while. After literally nearly a year, we finally found a hard equity lender. It is impossible to sell in Miami-Dade--a 36 months supply, and probably 48 months when you add in phantom inventory.

Another lady will refi in the next few weeks.

That one actually has a defense. She too lost her job and got behind.
At peak, her ltv was manybe 33%; not probably 66%. When she refinanced the stupid title company missed a couple of liens; she thought they hade been taken care of because her ex said he'd do it and she wasn't ask to pay them (true? I dunno; plausible.) Ok, she found a hard equity lender to give her a 2nd, and then I found the liens in my title search. I begged the foreclosure mill to make a title claim last September or so. Isn't that what title insurance is for? We have a procedure to divest liens from homestead property which takes 45 days. By the time the 45 days were up the property/loan mkt had gone to hell and the hard equity lender was no longer willing to lend. We finally found another hard equity lender, and by that time, we had to do the 45 day thing ago. By that time I filed a defense counter suing them because it was their title company's fault that the liens weren't cleared at closing etc, etc.
Did that inspire them to file a claim? No. The mill has now filed 2 requests for more time--as if I wouldn't give it!! Also, we got a pay off letter where the amount demanded for insurance was maybe triple was even expensive forced place insurance is. Yes we owe it, but they refuse to provide bills, so I have a hearing scheduled for next week so we can finally close. I hope the lender hasn't changed his mind. I almost hope it doesn't close, just for the intellectual challenge of seeing just how long these idiots will take to file a claim or otherwise resolve things.

And yes, nowadays I do file delays for the sake of delays. No justification except it's my way of punishing the lenders, and also I've heard some hairraising stories of abandoned houses uncareful by lenders.

Good afternoon Tanta - got an idea for you and CR... a money making idea. You should sell little 'Foreclosure Time Line Dials'... we use those in manufacturing to figure out our lead-times... time it takes to deliver a mold or die...

They look like this... with the center circle a separate dial that can move relative to the outer 'calander ring'. Just move the arrow to the 'start date'... and you can see out 'X weeks' to the next milestone.

Could even have little milestones - like the GSE min & max times for each state printed on the inner dial. Make it easy for the not-so-uber-nerds to play along.

And you don't even have to plug it in or boot it up. Doesn't even need a battery.

Bet you could sell kajillions of them to bankers, GSE bureaucrats and even 'armchair mortgage quarterbacks'... even offer to print originator names on them so they can hand them out like promotional 'thank yous'... almost a useful as an umbrella or a coffee mug.

Just a thought.