By sheer coincidence I just got off the phone with a friend who lives in Arizona. His wife lost her job and soon after their rate was adjusted up. In Arizona a 1st is non-recourse and since he's upside down and struggling to pay the mortgage he decided about 2 months ago to just stop paying and let the lender (Countrywide) foreclose. Having missed the Feb and Mar payments he comes home yesterday and finds a Fed-x package at his door. Assuming i't's a notice of default from Countrywide which he's been expecting he doesn't even open it until this morning. Turns out instead it's paperwork informing him he's been approved for a loan modification, even though they turned him down in Jan. But here's the insane part. The "new" loan modification INCREASES his payment and has an interest rate of 8.25%..Wtf?? IMO, we need to decide what where going to do about foreclosures. If we're going to make claims of helping people out then freakin help them. If we're not then just say so. But don't say one thing and do another.
Lol. So not only did the investors buy grotesquely overvalued high risk toxic junk at the top of the market, they didn't even make sure they had recourse in the event of borrower default? Ahahahaha.