Stop the Eviction of Jennifer Britt in Rosedale Park!

**Cincinnati_Kid** · July-18-12, 01:00 PM

Originally Posted by belleislerunner

I don't agree with the protest. Adults signed a legally binding contract. Adults no longer wish to fulfill their end of the contract but wish to be absolved of the consequences of their inaction. I encourage accountability.

Did you READ the story? Her Husband died in 06, she exhausted her benefits trying to keep up with the payments. Flagstar surely knew her dilemma, but they refused to work with her. This movie gets played over and over in this country by callous, cold-hearted and greedy banks and mortgage companies, that only see a $$ sign. Now if she were able to control her situation, that's one thing. It's just wrong for people to lose their homes over unforseen tragedies like health problems, job loss or death of a spouse.

Shollin · July-18-12, 01:04 PM

Originally Posted by Cincinnati_Kid

Did you READ the story? Her Husband died in 06, she exhausted her benefits trying to keep up with the payments. Flagstar surely knew her dilemma, but they refused to work with her. This movie gets played over and over in this country by callous, cold-hearted and greedy banks and mortgage companies, that only see a $$ sign. Now if she were able to control her situation, that's one thing. It's just wrong for people to lose their homes over unforseen tragedies like health problems, job loss or death of a spouse.

Her spouse could've had a credit life policy added to the account at any time. Her documents state she is responsible for the loan. Flagstar is a servicer. They are still bound by the investor requirements of Fannie Mae, Freddy Mac, FHA etc. If companies can just wipe away debt because someone passed, there would be no need for life insurance policies.

**DetroiterOnTheWestCoast** · July-18-12, 01:41 PM

Originally Posted by Shollin

Her spouse could've had a credit life policy added to the account at any time. Her documents state she is responsible for the loan. Flagstar is a servicer. They are still bound by the investor requirements of Fannie Mae, Freddy Mac, FHA etc. If companies can just wipe away debt because someone passed, there would be no need for life insurance policies.

Won't the debt be wiped away when Flagstar forecloses and sells the house for less than SWS is offering, after the house sits vacant and might be scrapped? ? If SWS is offering the appraised value, who will pay more than that? Won't the bank be responsible for the taxes after foreclosure? Despite the "bankerspeak" blaming the victim for not having a credit life policy, how is the foreclosure in ANYONE'S interest?

Shollin · July-18-12, 01:58 PM

Originally Posted by DetroiterOnTheWestCoast

Won't the debt be wiped away when Flagstar forecloses and sells the house for less than SWS is offering, after the house sits vacant and might be scrapped? ? If SWS is offering the appraised value, who will pay more than that? Won't the bank be responsible for the taxes after foreclosure? Despite the "bankerspeak" blaming the victim for not having a credit life policy, how is the foreclosure in ANYONE'S interest?

What they're proposing is a short sale. There is a process to do a short sale. Again, the bank is a servicer. The bank can't just say ok and wipe it away. The investor needs to agree to the terms as well. Also with a short sale, she would need to file a 1099 and pay taxes on the difference. Now it depends what kind of mortgage it is. If it's FHA, the bank will file a claim and recoup the loses and the title will be transfered to HUD and the government will be responsible. The debt isn't always wiped away when the home sells. They can still look to collect on the remainder which rarely happens. Bottom line is, you can't offer your own apprasail and protest until the bank agrees. There is a process. It's a long one due to government and investor regulations.

**DetroiterOnTheWestCoast** · July-18-12, 02:34 PM

If it's FHA, the bank will file a claim and recoup the loses and the title will be transfered to HUD and the government will be responsible.

Privatize gain; socialize loss

Shollin · July-18-12, 02:41 PM

Originally Posted by DetroiterOnTheWestCoast

If it's FHA, the bank will file a claim and recoup the loses and the title will be transfered to HUD and the government will be responsible.

Privatize gain; socialize loss

How is it a loss? FHA loans are for customers who have no money down and low credit scores. They couldn't get approved through Fannie Mae or Freddy Mac. The government then insures the loan since it is a riskier loan.

**Cincinnati_Kid** · July-18-12, 09:07 PM

Originally Posted by Shollin

Her spouse could've had a credit life policy added to the account at any time. Her documents state she is responsible for the loan. Flagstar is a servicer. They are still bound by the investor requirements of Fannie Mae, Freddy Mac, FHA etc. If companies can just wipe away debt because someone passed, there would be no need for life insurance policies.

I understand all of that. But flip the script and let that same scenerio happen to you or someone that you know. What will your stance be then?

Shollin · July-18-12, 09:39 PM

Originally Posted by Cincinnati_Kid

I understand all of that. But flip the script and let that same scenerio happen to you or someone that you know. What will your stance be then?

I have a life insurance policy and when I had a mortgage I had a life insurance policy on the loan. Mortgages are big commitments. I took out a mortgage for my home in Harper Woods and took a bath on it. I paid a lot more than the house was worth and lost a lot of money. I didn't go to the bank and demand they wipe away my debt. I learned my lesson and rent now.

People don't understand the mortgage process. 80% of loans are owned by Freddy Mac, Fannie Mae, or Ginnie Mae [[FHA). Flagstar does not own this person's loan. It was sold to Fannie Mae and Fannie Mae pays Flagstar a servicing fee. They cannot modify a loan they do not own.

There is so much more to this story. All we are hearing is the victims side. It is very common that only one spouse is on the loan due to credit reasons but both are on the deed. We don't even know if she is on the note. I've seen it happen often where the note holder passes and a spouse or child continues to pay the loan to keep the house. In that case, you can't modify a loan that doesn't belong to you.

These are always difficult situations. I also want to point out that the people who work in loss mitigation and foreclosure don't relish taking people's home. They are middle class home owners as well. They don't make a commission by taking your home. They simply do what they are required to do.

**corktownyuppie** · July-18-12, 10:19 PM

People also need to realize that if you overpaid for your house, it's not the bank that's getting all that money. For example, if you paid $100,000 for a house that was only worth $80,000, the mortgage company fronted that $100,000 to whoever sold you the house

So if you don't think the bank should come after you for the $100,000 you owe because the house wasn't worth it, you're blaming the wrong people. You should be blaming who ever sold you the $80,000 for $100,000.

The bank was just the middle man that fronted the money for you because you promised to pay it back to them.