Mortgage company woes, plans for the big crash

I am in the relocation business and some of my client's are with a major mortgage company. I have found out two developements that I thought were interesting to say the least..

The first being the LAYOFF's that are occurring within this company's mortgage writers group. I heard today that about 20% of one department alone got their walking papers because refies and regular mortgages applications are WAY DOWN!!

The second tidbit is what this major company is doing to what I beleive is the big housing crash. With every housing market crash, there will be a huge numbers of foreclosures. Foreclosures in the 1980's really hit mortgage lenders hard but they may have learned from past experience.. What they are planning to do is set up a department within the foreclosure group that will HELP YOU SELL YOUR HOUSE, instead of foreclosing on it..

Very interesting..

and right now there are fewer and fewer of those.
I got out in June - sold my house for 3 times what I paid and now the money is safely tucked away until the crash. Then I will buy a cute little place with cash.

because it's not going to be a soft landing any idea to soften the blow will be entertained, it'll be hard hopefully we'll get good democrats in office to deal with the issue instead of these do-nothing bonehead republicans

This could be one hell of jolt.

I suspect things could get very ugly, very quickly. A good time to sit tight and not pile on the debt until we see which way things are heading.

Who are the people that will be buying up houses when this happens? Who is immune to the housing market crash?

I suspect that the same people who are buying second, third and vacation homes will snatch up some of these foreclosures, but to what end? To whom will they sell them when it's all over?

If things turn bad, you can get out, you will most likely take a major hit, but you can get out.

I want to know who will be picking apart these corpses.

I am sure they would prefer to think of themselves as "good business people helping out their fellow man and just doin' the best they can for 'em"... But, Vultures might be more accurate.

guss what happens? The 1980's ruined so many people because they were over extended. The younger ones don't have this experience or knowledge to keep this from happening to them. Sad

Yes, many folks were hurt in the 80's because they were over extended and the younger ones don't have the experience - we didn't then either... so the cycle continues...

just like now trying to keep up an unrealistic life style for their income. My husband and I were conservative and saw what our friends were doing and wondered if we were looking at things wrong by thinking these good times Can't last, interest was sky high. Sad to say we were right. Reagan caused it with his tax breaks, trickle down etc., just like now. Our interest rates are really fine now compared to then. Bush I continued this process and we crashed. They said Clinton couldn't straighten out the economy as quickly as he claimed while campaigning. Well, he got our economy going even sooner. Imagine that.

through all the economic nonsense, an ugly divorce, remarriage and step-daughter though college. Not the greatest area, but okay and a pretty good local government (not perfect, but good). We had considered moving, but gas prices and now the housing market shifts will keep us here, doing some modest upgrades and repairs. Just keeping the credit cards under control and not getting silly with spending.

I moved a couple into an appartment yesterday and they know the housing market is crashing. They stated they will wait 3-6 months before buying another home.. Of course they have to sell their 6800 sf home in columbus.. Now that's a big house..

5 months ago . I hope they are able to sell.
They are good neighbors so I'm sad to see them
go .

in my neighborhood and I'm only a few miles from you. There is one white elephant, a house where a novice contractor tried to do a flip but he didn't rehab it smartly. The house has no garage, a small driveway, and sits very close to the road, factors that together make it unusual in this area.

The most recent market data I've seen shows the properties selling at the listing price, give or take a few thousand. Weird.

I'm looking for an alternative right now, and dreading the call I have to make Monday.

So you sell at a price lower than you owe on it and now all you have to do is find some place to live that is cheap enough that you can pay for not only it but also for the balance you owe on the old house that has been sold.

Or

You just walk away from it and find a place to live you can afford. Creidt shot all to hell.

Or

You rent out the house you can't sell for jack shit in the hope you can cover the payments while you go rent a much cheaper place while you hope for better times.

Or

You jump off a bridge ....

Neighbor put their house on the market a few weeks ago and it's under contract already. I don't see any signs of the market slowing down around here. I know each area's different though.

over last year, the numbers were something like June 05 had about 850 compared with june of 06 had 1877!! They actually interviewed the woman that stands on the steps and does the auctions, she said it used to happen about twice a week but now she's out there everyday, all day.

In judicial states, a foreclosure can take a few months or a few years, depending upon a number of factors. What the lender should do is keep the damn loan performing. Someone gets behind, modify the note/mortgage, kick the arrears to the end of the loan period and wipe the slate clean. Let folks get out from under a problem. Lenders are NOT in the real estate business, they're in the collecting money in interest business.

But hey, who the hell am I, anyway. If a lender wants to send FNMA/FHLMC hundreds (or thousands) of dollars in interest on a non-performing loan each month while it sits in forclosure, then I guess that's their option.

I'm hoping the fact the we got the house a year ago WAY under market value (113k where the comps are selling for 190k) will save our butts. Also the fact that we are in a desirable location I'm hoping will keep us from getting nailed.

But we will see. We will see.