... The predicament of the Waters-Reese family is common in Florida today. The state routinely sets new records for foreclosures â in the second quarter, 20.13 percent of its mortgages were delinquent or in foreclosure, a national high, according to the Mortgage Bankers Association. And with housing prices still in a free fall, almost half of all borrowers in Florida owe more on their mortgages than their properties are worth, says CoreLogic, a data firm. While the Waters-Reese case may not be unusual in Florida, the coming auction of the home is still notable: it will be a result of the Florida Legislatureâs new effort to cut the number of foreclosures inching their way through the stateâs courts. Earlier this year, Florida earmarked $9.6 million to set up foreclosures-only courts across the state, staffed by retired judges. The goal of the program, which began in July, is to reduce the foreclosures backlog by 62 percent within a year. ... One Firm, Many Cases The lawyer most closely identified with Floridaâs foreclosure morass is David J. Stern. He is something of a mystery man within the foreclosure world; it is impossible to reach him by phone since his name is not in the firmâs voice-mail directory and, until recently, there were no publicly available photographs of him. ... Earlier this year Mr. Stern, who has profited handsomely from the foreclosure trade, sold the part of his operation that provides support services for his firmâs foreclosure work â DJS Processing â to a public company called the Chardan 2008 China Acquisition Corporation. The processing company and affiliates generated revenue of $260 million in 2009, financial filings show. Brian Foley, a compensation consultant in White Plains, concluded that Mr. Stern made $17.8 million in 2008, including $12.64 million in compensation and nonrecurring benefits of $4.36 million. In the deal with Chardan, Mr. Stern and his affiliates were paid $93.5 million: $58.5 million in cash and $35 million after the transaction closed, according to government filings. In addition, Mr. Stern got a promissory note for $52.49 million to be paid out over the next couple of years. In recent years, Mr. Stern and his wife, Jeanine, have bought nearly $60 million in real estate, mostly in Florida, property records show. Their Mediterranean-style home on Harborage Isle Drive, in a gated community in Fort Lauderdale, faces water on two sides and cost almost $14 million. Not far away, in Hillsboro Beach, the Sterns bought two waterfront properties for $17 million. ... In a nod to his foreclosure work, according to the acquaintance, Mr. Stern mused about possibly naming the larger yacht Su Casa Es Mi Casa â âYour House Is My House.â But his wife and others cautioned against it, according to this acquaintance, and Mr. Stern named the boat âMisunderstood.â Mr. Stern denies that he considered the âSu Casa Es Mi Casaâ name. http://www.nytimes.com/2010/09/05/business/05house.html?pagewanted=5&ref=business
I agree. I really don't understand why people get so emotional about folks getting foreclosed on. It's a business transaction, just like anything else. When you can't pay what you've promised to pay, someone else gets your secured asset (house). Maybe I'm cold hearted, but I can't shed a tear for a family who loses a $2mm home in foreclosure.
that is where I am confused. if you borrow money to buy a car and do not pay the bank repos the car. why do people think a house is different? no one forced anyone to borrow and buy a home.
Now there is an understatement. You really should try reading the whole article, even if it takes you a long time. The key issue is that lenders who do not own the note are foreclosing on homes to which they technically do not have legal right to. Scumbags like Stern are alleviating this process.
that's where things get rough...however, MOST (always exceptions) cases are the same: people were behind in payments and were going to get foreclosed on anyway. By the time the actual noteholders realize it, it's far too late. Everyone is scamming everyone.
I dont understand why we even feel bad about foreclosure. If you cannot afford in the first place, don't buy it. But you think housing market will go up double digits every year, so it is a fool not to jump in. Or you use your house at ATM and also counting double digits gain every year. I saved years to put down a down payment for my house and to me, it is not as an investment/ATM, it is a HOME for my family. I am against Obama's plan to give out more free money to people who cannot pay their mortgage (which will turn over to banks)