Coronavirus Mortgage and Real Estate Crisis of 2020

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
They haven't fully set up the criteria needed to qualify for it yet however here is what they are promising:

Fannie Mae
• Homeowners who are adversely impacted by this national emergency may request mortgage assistance by contacting their mortgage servicer
• Foreclosure sales and evictions of borrowers are suspended for 60 days
• Homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
• Credit bureau reporting of past due payments of borrowers in a forbearance plan as a result of hardships attributable to this national emergency is suspended
• Homeowners in a forbearance plan will not incur late fees
• After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification.

Freddie Mac
• Providing mortgage forbearance for up to 12 months
• Waiving assessments of penalties and late fees
• Halting all foreclosure sales and evictions of borrowers living in Freddie Mac-owned homes until at least May 17, 2020
• Suspending reporting to credit bureaus of delinquency related to forbearance
• Offering loan modification options that lower payments or keep payments the same after the forbearance period
 

bigfrog

LoanSafe Member
Aug 31, 2011
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This is great.. just what I had expected.

Well, looks like someone can create/start HampsterGame like post.. Called it Covid19Game. Just get yourself sick( or a family member, or a doctor who is willing to work with you, wink wink) and play the system. You are bound to free money, free housing, free food, free healthcare, wipe out your loans, debts, or at least no interest put on it for a long time. Inflation will hit the ceiling. Why work and save?

Correction and adjustment will happen. So many factors that no one is putting in consideration. Why is there an era called Baby-Boomer? people are spending more time at home/indoor to make babies.
 

isisis

LoanSafe Member
Jun 22, 2010
1,777
246
63
North bay
Your alternative plan would be that homeowners take the hit from a national shutdown preventing them from earning money to make mortgage payments and lose their homes? By the time any "adjustment" can take place it will be far too late given the time sensitive nature of the mortgage loan contract.

And BTW the average female Boomer is well past the age of child bearing. Big Frog, I think you say things just to be contrary.
 

bigfrog

LoanSafe Member
Aug 31, 2011
359
44
28
55
I am talking about Boomer II.. Its never too late. Last, I remember a foreclosure average somewhere in the line of six-months. And that was considered fast. In 2008, they came up with plan 700-800 billion dollar bailout. They had healthy people and very healthy lenders/investors back then. We are at a time, where buying a house - being a home owner don't matter. Now, 2020, they want a 2trillion dollar stimulus plan. More than twice the amount of the last. They know something they don't want the public to know. I guessing that no matter if they find a cure or not, the all the old folks would die from it and young people badly damaged from it. Maybe social distancing is not enough. If it can be transmitted by touching then it can be airborne. Mosquitos and/through/to other animals.

I don't know why some people are saying negative things about Trump, by twisting his words. He is doing a excellent job. Bare in mind, his decisions for the good of the nation aren't base on himself. He isn't racist for referring covid19 as "Chinese virus" It was/still is acceptable to call or name things from its origin. The aliens would call it the Earthling virus. All this time, I was calling it Kung Flu or Wang-Chung virus. But, I am a nobody. Our society has gone into some wacked way of thinking, specially from the women side. When women say "You look nice!", it is ok. When a man say "Hello!", the women would assumed he wants something and usually file some form of complaint.
 

just_me

LoanSafe Member
Sep 14, 2015
629
57
28
At least we have a protocol from last time. I can see the fall out from this being a year or so. It would be really, really super if servicers didn't play the "deny til ya die" game and rubberstamp the hardship reductions applications, forbearance or suspensions, until this is over. So much better than rubberstamping foreclosures in court! Oh wait. Court IS CLOSED. So. Maybe we can save some frustration and fast track the solutions. After all, we can't STAY AT HOME if we HAVE NO HOMES.

They haven't fully set up the criteria needed to qualify for it yet however here is what they are promising:

Fannie Mae
• Homeowners who are adversely impacted by this national emergency may request mortgage assistance by contacting their mortgage servicer
• Foreclosure sales and evictions of borrowers are suspended for 60 days
• Homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
• Credit bureau reporting of past due payments of borrowers in a forbearance plan as a result of hardships attributable to this national emergency is suspended
• Homeowners in a forbearance plan will not incur late fees
• After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification.

Freddie Mac
• Providing mortgage forbearance for up to 12 months
• Waiving assessments of penalties and late fees
• Halting all foreclosure sales and evictions of borrowers living in Freddie Mac-owned homes until at least May 17, 2020
• Suspending reporting to credit bureaus of delinquency related to forbearance
• Offering loan modification options that lower payments or keep payments the same after the forbearance period
 

isisis

LoanSafe Member
Jun 22, 2010
1,777
246
63
North bay
I am talking about Boomer II.. Its never too late. Last, I remember a foreclosure average somewhere in the line of six-months. And that was considered fast. In 2008, they came up with plan 700-800 billion dollar bailout. They had healthy people and very healthy lenders/investors back then. We are at a time, where buying a house - being a home owner don't matter. Now, 2020, they want a 2trillion dollar stimulus plan. More than twice the amount of the last. They know something they don't want the public to know. I guessing that no matter if they find a cure or not, the all the old folks would die from it and young people badly damaged from it. Maybe social distancing is not enough. If it can be transmitted by touching then it can be airborne. Mosquitos and/through/to other animals.

I don't know why some people are saying negative things about Trump, by twisting his words. He is doing a excellent job. Bare in mind, his decisions for the good of the nation aren't base on himself. He isn't racist for referring covid19 as "Chinese virus" It was/still is acceptable to call or name things from its origin. The aliens would call it the Earthling virus. All this time, I was calling it Kung Flu or Wang-Chung virus. But, I am a nobody. Our society has gone into some wacked way of thinking, specially from the women side. When women say "You look nice!", it is ok. When a man say "Hello!", the women would assumed he wants something and usually file some form of complaint.
Trump dropped the ball. We had a major heads up back in December to prepare for this and if it had been handled appropriately much of the damage could have been averted. We could have had a plan like South Korea, we could have stockpiled masks and ventilators, we could have had people tested and isolated. While he was pretending it was a hoax it was gaining a foothold all over the country. He chose to ignore it and the economy is collapsing and people are dying.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
The bad news continues as most people stick their heads in the sand.

Last week, 6.6 million Americans, a 3000 percent increase, filed for unemployment as the coronavirus pandemic continued to devastate the economy. On Thursday, evolutionary anthropologist Dorsa Amir tweeted an animated graph that shows the massive jump alongside data from 1965 to earlier in the year. She also posted it on a data appreciation subreddit.

"We're dealing with truly staggering numbers here," Amir tweeted, emphasizing the jaw-dropping increase in unemployment so far.


 

OneHugeMess

LoanSafe Member
May 30, 2016
561
48
28
Trump dropped the ball. We had a major heads up back in December to prepare for this and if it had been handled appropriately much of the damage could have been averted. We could have had a plan like South Korea, we could have stockpiled masks and ventilators, we could have had people tested and isolated. While he was pretending it was a hoax it was gaining a foothold all over the country. He chose to ignore it and the economy is collapsing and people are dying.
This is not entirely Trump's fault. Most of the blame should be on CHINA who did everything they possibly could to lie, and make themselves look better. Even right now, they still haven't finished their lies, scams and schemes. We have ZERO clue what the real numbers are, how this virus works, and what the long term ramifications will be. The calculated decision of the Communist Regime to try and hold power, and save face - is the reason we are at the point we are now.

Regardless, I didn't come here to talk about the News Media & their obsession with traducement journalism. I actually came here to talk to @Moe Bedard. While I'm sure your partially aware, I wanted to say it out loud. We are in unprecedented times. I know when you started this website back in 2007, people were getting wrecked by their ARM Adjustments. Then, it became people laid off from the craptastic economy that followed.

Those days were so long ago, and the times have changed. There is a unprecedented amount of people who are going to be defaulting on their home mortgages, in April & May. One servicer had estimated that 25% of their FHA Portfolio was going to sour, while another said that they estimate 17% of their Fannie Mae/Freddie Mac loans would default. You also have MILLIONS of people who are going to be on forbearance programs, not fully understanding how they work -- or, able to come up with the 4th Month Balloon. These servicing companies are not prepared for all the defaulted loans, and they don't have the ability to service all of them. If there is HELP - most people will fall through the cracks.

The more I sit around and think about it, the more concerned I get about the number of people who are going to be falling behind. So many people either bought a home and were approved with Sky-High DTI's, and No Reserves... or they bought years ago, and watched their income & savings dry up.

The point I'm trying to make, is I'm expecting a surge & flood of traffic and new users to LoanSafe, very soon. And I wanted to ask.. What is being done to prepare and keep this site alive?

I know you are doing the best you can at the moment, but I wanted to formally ask, as well as offer my support. If I can do anything, or donate my time in anyway, I want to know. I also think you should consider adding a donation button on the site - for those that have received help, or adding some additional advertisements.
 
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Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
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After losing my home to Wells Fargo in 2012. I found out who the crooks are. They are the Democrats. Obama let the banks off of their criminal prosecution. The Office of the Comptroller of the Currency dropped the ball on the Independent foreclosure review. The people who lost their homes started a movement call Occupy Wall Street. The banks were vandalized in some cities as the anger of the people wronged started to intensify. Obama saw this and diffused it with plants that subverted the movement. I know this as I was part of it protesting in front of the District Court here every day. Seeing the injustice I began to develop instruments powered by substantive law to put on properties to stop foreclosures. I also developed documents from the documents used against us to stop the Trustees from foreclosing. The main problem with this economy is the unharnessed greed and cronyism in real estate and credit cards. This is and can be traced to the crony banks. I run the largest electronic repair lab in the state of Utah and I do not and will never take the crony cards. For those who say it is Trump's fault it in NOT. Maxine Walters sitting on the House Financial Services Committee sat and watched this sin against the people take place. I am 65 and have seen alot of corrupt politicians and I will say that Trump is the only one who cares about you and me. This is why the democrats want him gone. He has artfully exposed their corruption. Just look at the last time there was a bailout. The corporations, the banks and the stock market the GSEs . These cronies were bailed out quarterly throughout the OBAMA YEARS. As soon as Trump took over this nonsense stopped. Remember this, when you signed that DEED OF TRUST sanctioned and approved by the US DISTRICT Court you signed away your rights. The banks are so quasi they can changed their acting status. They have power over you and your country. Rant over. Thanks for reading.
 
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just_me

LoanSafe Member
Sep 14, 2015
629
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From the American Banker News:

"Servicers are required to advance principal and interest payments to investors when borrowers do not pay their mortgage. While most servicers are able to meet these advances for April, it is unclear if they can cover payments in May. The Mortgage Bankers Association has estimated servicers could be on the hook for $75 billion to $100 billion in advances if roughly one-quarter of residential borrowers are unable to pay their mortgage and need forbearance for six to nine months.

Homeowner requests for forbearance have skyrocketed since the FHFA first announced a 90-day foreclosure moratorium last month. The Coronavirus Aid, Relief, and Economic Security Act went further, giving borrowers with federally-backed loans six months' forbearance and a further six months' extension if they ask for it."

Wondering, given what happened last time, if they (servicers) will start doing the "accelerated" default games again??? You know the drill, reverse a payment then demand 3 at once in order to claim FC because they are still woefully under-capitalized? Once they move to FC, it appears they no longer are liable for making those "advancements" of principal and interest.

 
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Losingitintexas

LoanSafe Member
Apr 20, 2012
5
3
3
I have to thank this site in part with helping me get a successful modification with Chase several years ago. Now like so many others, I have lost my job and I was already a month behind on my mortgage. I have an excellent modification with 3% interest and I'm not upside down on my loan. But I'm worried about taking any kind of forbearance on my loan, because the Hamp rules state that if you fall behind three months all the terms of your modification are null and void. I also don't trust Midland Bank (that bought my loan from Chase) to not suddenly want all their money back when the terms are over. IN addition, I know I'll lose the incentive (5K in principle paydown) to not fall more than three months behind. To make matters more complicated it's an FHA loan. Our condos were at a record high but I know from reading your blog that prices are going to free fall even in Arlington, TX. My unemployment income won't start for a couple of weeks and I'm really not sure what to do. I'm a single 59 year old woman that's managed to hold on to this home for 10 years in spite of ups and downs. No children, no one to help. ( Side note: I find it hysterical when people start blaming both parties, when lack of regulations on mortgage companies and banks is what usually causes this mess. And both parties are accountable!! All the way back to Clinton and Bush. As long as both parties are bought and sold by big banks that fund their campaigns nothing will change.) Scared in Texas....thanks in advance for your wise words.
 
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lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
I'm sure you have done this already. But please get in touch with your mortgage company now and go over your options. My guess is no one will be foreclosed on due to the Corona Virus. But it will cause great fear and stress thinking that we will be. LA County today just extended the shelter in place order until May 15th. That means for another 6 weeks only essential workers are allowed to work. And unemployment in no way replaces a paycheck. They will HAVE to work with people.

I have to thank this site in part with helping me get a successful modification with Chase several years ago. Now like so many others, I have lost my job and I was already a month behind on my mortgage. I have an excellent modification with 3% interest and I'm not upside down on my loan. But I'm worried about taking any kind of forbearance on my loan, because the Hamp rules state that if you fall behind three months all the terms of your modification are null and void. I also don't trust Midland Bank (that bought my loan from Chase) to not suddenly want all their money back when the terms are over. IN addition, I know I'll lose the incentive (5K in principle paydown) to not fall more than three months behind. To make matters more complicated it's an FHA loan. Our condos were at a record high but I know from reading your blog that prices are going to free fall even in Arlington, TX. My unemployment income won't start for a couple of weeks and I'm really not sure what to do. I'm a single 59 year old woman that's managed to hold on to this home for 10 years in spite of ups and downs. No children, no one to help. ( Side note: I find it hysterical when people start blaming both parties, when lack of regulations on mortgage companies and banks is what usually causes this mess. And both parties are accountable!! All the way back to Clinton and Bush. As long as both parties are bought and sold by big banks that fund their campaigns nothing will change.) Scared in Texas....thanks in advance for your wise words.
 
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Losingitintexas

LoanSafe Member
Apr 20, 2012
5
3
3
I hope you're right. But I have my doubts that any bank can tell you what the government and the FHA will do to an existing modification contract. I don't think they have any control over that. My contract states if I miss three payments my payment will go back to what the payment was prior to the modification. Unless Hamp waves their rules I don't see what the banks can do. I guess I'll have to try to call the FHA first.
 
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isisis

LoanSafe Member
Jun 22, 2010
1,777
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I hope you're right. But I have my doubts that any bank can tell you what the government and the FHA will do to an existing modification contract. I don't think they have any control over that. My contract states if I miss three payments my payment will go back to what the payment was prior to the modification. Unless Hamp waves their rules I don't see what the banks can do. I guess I'll have to try to call the FHA first.
Technically speaking when the payments are missed that's considered a breach, you hadn't complied with the terms of the contract because payments weren't made. However, in contact law there are various circumstances in which a breach is excused. Among those things that excuse performance are impossibility or frustration.

These are usually difficult arguments to make but these are highly unusual circumstances. Never before to my knowledge has the entire world just shut down for all practical purposes. Never before have people been ordered to stay home and unless you work from home that order meant stop working to earn an income.

There's something in contact law called a force majeure from the Latin for superior force. It essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or an event described by the legal term act of God (hurricane, flood, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract.

Some companies in the United States have used the Coronavirus pandemic as a force majeure in an attempt to escape contractual liability by applying the elements of an (1) unforeseeable event, (2) outside of the parties’ control, that (3) renders performance impossible or impractical.

Loan contracts don't have an applicable force majeure provision but as an alternative, parties could be excused from performance by claiming impossibility or impracticability.

Contract law recognizes and accommodates situations where performance is made impracticable. Section 261 of the Restatement (Second) of Contracts explains:

"Where, after a contract is made, a party’s performance is made impracticable without his fault by the occurrence of an event the non-occurrence of which was a basic assumption on which the contract was made, his duty to render that performance is discharged, unless the language or the circumstances indicate the contrary."
 

Gimpster

LoanSafe Member
Sep 20, 2010
80
3
8
Just wanted to say this site helped me out through a hard time. Glad you're still around, and the wealth of information, even if the game has changed, is still huge. Another mortgage/housing crisis has been in my mind a lot lately as we go through this situation. It brought me back here just to see how things were going, and it was quite the trip down memory lane re-reading my old posts.

Between the last recession, my wife having cancer (twice! and she is A-OK now :) ) ... it proved to be too much, and I had to go through a strategic default. I documented it on here, not many people in Iowa had to go through that so it was a bit of a dark alley.

I currently own my home cash outright here in Central Florida, but if everything I suspect will happen... happens... it will be painful watching the capital destruction I guess. At least I have a place to stay though, and that's more than a lot of people might be able to say soon. When I got this house, I had to laugh, I did consider a mortgage and they approved me to an amount that would have been asinine with almost nothing down. Right back where we started in so many ways.

I would prefer to avoid the raw politics of this situation, but suffice it to say this has brought so many things that have been bubbling in the background into the foreground QUICKLY. The lack of sick time/PTO (which even I don't have...), wobbly health insurance market system and housing insecurity. For years I've read about how the average American couldn't come up with ~$500 cash in an emergency, and here we are. Some of that is personal choice, some of that is due to the system we have collectively nurtured.

Thanks for reading, and sadly look forward to what might be ahead for our nation and the activity of this forum.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
82
2
8
Of course, I have been in a securities backed loan since 2005. Started off as a INT ONLY with COUNTRYWIDE then sold to BOA, then serviced by several Servicers. Was lucky - I guess to get a HAMP MOD in 2015. In 2020 I'm supposed to get a "bonus" of $5000 for not missing any payments - which I haven't. I've come very close and this year is worse. I called MR POOPER to see if I could get it modified and was told no. I was shocked...MR POOPER won't even let me apply for a MOD on-line saying that my loan is not eligible. I've done a lot of digging and see that U.S. Bank National Association as trustee for the holders of SARM 2005-23 owns my mortgage? Did further digging and see that three INVESTORS ID'd as: AL9, BLQ and H10 own are the investors. I will have a difficult time paying my large mortgage this month and wondered if something will shake out of this? I saw that investors are backing out of these types of loans, so does that mean the Federal Government will finally "buy" these securities? As much as I have researched, my loan is not a Fannie Mae or Freddie Mac, etc. I don't want to fall behind again, but hope that I'll be able to get a modification to extend the years, terms, etc. Lowering my monthly payment is my goal. Comments please. Again, thanks MOE for all that you've done for us out here...
 
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Losingitintexas

LoanSafe Member
Apr 20, 2012
5
3
3
I don't know if this will help at all but according to Hamp modifications as long as you don't miss three payments in a row (or get three months behind) you will still get the incentive. At least that's what my paperwork says. I'm worried about losing that incentive too that's why all this help looks like a trap to me. Again I hope I'm wrong! But I don't trust the current admin to follow through with the incentive anyhow I keep expecting it to be yanked. And If I fall that far behind I think that's the perfect excuse for the gov to say, Sorry - thanks for playing!
 

NewbieFed

LoanSafe Member
Jun 6, 2011
82
2
8
I am talking about Boomer II.. Its never too late. Last, I remember a foreclosure average somewhere in the line of six-months. And that was considered fast. In 2008, they came up with plan 700-800 billion dollar bailout. They had healthy people and very healthy lenders/investors back then. We are at a time, where buying a house - being a home owner don't matter. Now, 2020, they want a 2trillion dollar stimulus plan. More than twice the amount of the last. They know something they don't want the public to know. I guessing that no matter if they find a cure or not, the all the old folks would die from it and young people badly damaged from it. Maybe social distancing is not enough. If it can be transmitted by touching then it can be airborne. Mosquitos and/through/to other animals.

I don't know why some people are saying negative things about Trump, by twisting his words. He is doing a excellent job. Bare in mind, his decisions for the good of the nation aren't base on himself. He isn't racist for referring covid19 as "Chinese virus" It was/still is acceptable to call or name things from its origin. The aliens would call it the Earthling virus. All this time, I was calling it Kung Flu or Wang-Chung virus. But, I am a nobody. Our society has gone into some wacked way of thinking, specially from the women side. When women say "You look nice!", it is ok. When a man say "Hello!", the women would assumed he wants something and usually file some form of complaint.

How can the CDC or WHO still use the terms: Hong Kong FLU or SPANISH INFLUENZA and not also be considered racist? Ridiculous. Would probably be more PC to call it the WUHAN FLU IMHO.
 

NewbieFed

LoanSafe Member
Jun 6, 2011
82
2
8
I don't know if this will help at all but according to Hamp modifications as long as you don't miss three payments in a row (or get three months behind) you will still get the incentive. At least that's what my paperwork says. I'm worried about losing that incentive too that's why all this help looks like a trap to me. Again I hope I'm wrong! But I don't trust the current admin to follow through with the incentive anyhow I keep expecting it to be yanked. And If I fall that far behind I think that's the perfect excuse for the gov to say, Sorry - thanks for playing!
Thanks LIITX...It's crazy now with my work volume dropping drastically, but MR POOPER still wants me to pay and I will do my best to pay my monthly payment. But, it also angers me when they tell me I cannot get a modification. I haven't missed a payment for almost 5 years and they treat me like that. I never intended to stay in this house this long...actually was going to move on in 3-5 years but life happens. I can't REFI because I owe almost $100000 more than it's appraised at. I would love to get ahold of ALL of my documents since 2005 and have a financial review done of all of the financial charges placed against me. I'm sure there are a lot of junk charges and other unnecessary charges that were piled onto my loan. If you guys can think of any strategy short of defaulting at this time, I'd appreciate it. I want to be an upstanding example of a citizen, human and debtor, but it's getting much harder to STAY CALM AND CARRY ON.
 

Losingitintexas

LoanSafe Member
Apr 20, 2012
5
3
3
Chase added about $8000 back into my loan but since the interest was 3% I am holding out for that payout. I was furloughed last week doubt I'll get that incentive. I'm still hoping I might be able to lease but who knows if I can find an employed person in the DFW area right now. You still might try the folks at NACA. I can't remember what the initials stand for but they got a modification for me in 2012. It took a year. I doubt I could have gotten it without NACA's help. It was a huge hassle I admit but it finally worked. Chase did not want to do the modification but NACA has lawyers working for you and they have an online platform where you load all your forms. Every time Chase said they didn't have something I referred them to the NACA website and my account info. (Because yes, they were lying about not receiving paperwork) It might be worth a phone call to them. Just google NACA and prevent foreclosure and you should find them. Good Luck!
 
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