I've been a long time listener to Behind The News - which I love - but needed to say an extra thanks for all of the coverage on housing. I'm a HUD approved foreclosure counselor up in ______________ and over the past 2 years that part of my job has become quite the hell on earth. I have looked forward to Thursday's drive home for some validation that things ain't so great out there!
Unfortunately it's getting worse. Used to be I could feel comfortable telling homeowners that the bank would prefer to keep the loan, but no more. I now have loss mit telling me that the 'investors' will only allow such and such plan (which the homeowner inevitably cannot do). I have a source who tells me investors are trying to liquidate everything. So foreclosure rates go up 9% in a month.
The next horror I see coming down the pike are the loan servicers. Forced on homeowners, they are severly limiting loss mitigation, some only offering the most outrageous of plans. Servicing fees are usually small, their real money comes from the extra charges (late, legal, and appraisal fees, etc) that they can only charge (and keep) when someone is behind. So gee, I wonder why they never received that payment I have a cancelled check for. They are comparable to collection agencies.
I have mixed feelings about the whole thing - happy that the piggish among us might get theirs, unhappy to see how my clients suffer (counselors say it's like counseling disaster victims). So with all the proverbial shit hitting the proverbial fan, on Thursdays I get into my car with all the windows shut - my personal version of the bubble - and feel better (well, not better.. not insane. sorry not as much of a compliment). So thanks.