Richard Croak Says Loan Modifications Have Declined As Home Foreclosures Remain High
Q: Richard, give us overview of this year. 2011.
Richard Croak – Our business has experienced somewhat of a slowdown because a lot of people have given up on ever coming out of this economic situation we find ourselves in. The economy really hasn’t come back the way it should have. Prices have continued to slide and people are walking away from their houses instead of saving them. A lot of my clients have been doing short sells for some time. Either they can’t find a buyer. When they do find a buyer, then they can’t get the bank to accept an offer. And the bank keeps asking them to do a short sell which is kind of odd, because the paper work keeps coming back. That’s been the way this year has gone. Bankruptcy filings were going up, but by the summer – they began to go down.
Q: And, earlier flooding this year put some farmers in jeopardy
Richard Croak - That’s correct. You can still come in – and we’ll take a look at your situation.
Q: What about 2012?
Richard Croak - I predict the first quarter of next year will see more foreclosures. Many of the banks had been holding back – because of their loan documentation failures. There’s a new wrinkle out there. The federal reserve and office of the currency have now started this program where they are going to do some kind of investigation or evaluation of how the banks have done through this foreclosure process. But the problem is – that many of these loans can’t even be documented and couldn’t be foreclosed because, they couldn’t even find the documents.
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