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Wages and energy have not increased. Tariffs on food are basically non existent for most items. It's 100% purely supply side pricing, propped up by government

Wages and energy have not increased. Tariffs on food are basically non existent for most items. It's 100% purely supply side pricing, propped up by government spending and credit (which is largely backstopped by the government as well). I listened to a podcast recently that some 'homeowners' have not made a mortgage payment in years, have no ability to pay, but here are essentially unlimited 'no doc' mortgage modifications available since the Corona time period.

tomjakubowski 9mo ago
> listened to a podcast recently that some 'homeowners' have not made a mortgage payment in years, have no ability to pay, How? Somebody is holding the bag here on the mortgage - a bank, probably. And they are fine with not receiving payments? Or is somebody else making payments on the homeowner's behalf?
- quietsegfault 9mo ago
  Mortgage foreclosure is a legal process that takes a very long time and is very expensive.
  - groby_b 9mo ago
    Banks are perfectly well equipped to foreclose on you. Ask anybody who was around in 2008. You don't usually skate by on years of non-payments, so I'd sticker the original claim with [citation needed]
    - Amezarak 9mo ago
      Don't know if this is what the OP is referring to, but: https://archive.is/2EObp https://archive.is/2EObp sounds like a very similar thing. Here's another one on perpetual forbearances: https://www.wsj.com/opinion/covid-housing-relief-forever-recovery-mortgage-borrowers-home-buyers-housing-prices-da4e60a2 https://www.wsj.com/opinion/covid-housing-relief-forever-rec... This would seem to indicate that Covid forbearances are extending into 2026: https://www.hud.gov/sites/dfiles/SFH/documents/SFH_FHA_INFO_2025-08.pdf https://www.hud.gov/sites/dfiles/SFH/documents/SFH_FHA_INFO_...
      - linuxftw 9mo ago
        Yeah, those are some of the programs I was referring to. The 'loophole' aspect that was mentioned on the podcast is that when the FHA does the 'loss mitigation' (aka, refi's the loan), there is not any kind of qualification as to whether the buyer will ever be able to make a payment on the new loan. It's just approved anyway, and the cycle can happen unlimited times. I think they're looking at adding a means test, but I'm unsure.
  - mbrameld 9mo ago
    It doesn't take years, and it's less expensive than writing off the mortgage.
    - quietsegfault 9mo ago
      In judicial foreclosure states, the process can take 12 to 24 months, and longer if contested or if other periods apply. In nonjudicial states, timelines are shorter but still typically 4 to 9 months from default to sale. Lenders incur legal fees, court costs, property taxes, insurance, maintenance, HOA dues, servicing advances, and loss of interest during the process. Industry estimates often put foreclosure costs in the tens of thousands of dollars per loan, excluding the loss from selling the property below the outstanding balance. “Writing off the mortgage” is not the realistic alternative. Lenders generally compare foreclosure against loan modification, repayment plans, short sales, or deeds-in-lieu, because charge-offs are accounting outcomes after losses are realized, not an operational substitute for foreclosure.
- linuxftw 9mo ago
  So, the basic process is 1) Borrow stops making payments. 2) Borrow goes into forbearance for 12 months just prior to foreclosure start. 3) Forbearance ends, borrower cannot make current. 4) FHA steps in to do loan modification. Essentially, they roll the forebeared balance into the loan, payoff the existing mortgage, and issue a new FHA-backed loan, without any income or payment ability qualifications. 5) Repeat the process again. So, the government is making everyone whole.

tomjakubowski 9mo ago

> listened to a podcast recently that some 'homeowners' have not made a mortgage payment in years, have no ability to pay, How? Somebody is holding the bag here on the mortgage - a bank, probably. And they are fine with not receiving payments? Or is somebody else making payments on the homeowner's behalf?

quietsegfault 9mo ago
Mortgage foreclosure is a legal process that takes a very long time and is very expensive.
- groby_b 9mo ago
  Banks are perfectly well equipped to foreclose on you. Ask anybody who was around in 2008. You don't usually skate by on years of non-payments, so I'd sticker the original claim with [citation needed]
  - Amezarak 9mo ago
    Don't know if this is what the OP is referring to, but: https://archive.is/2EObp https://archive.is/2EObp sounds like a very similar thing. Here's another one on perpetual forbearances: https://www.wsj.com/opinion/covid-housing-relief-forever-recovery-mortgage-borrowers-home-buyers-housing-prices-da4e60a2 https://www.wsj.com/opinion/covid-housing-relief-forever-rec... This would seem to indicate that Covid forbearances are extending into 2026: https://www.hud.gov/sites/dfiles/SFH/documents/SFH_FHA_INFO_2025-08.pdf https://www.hud.gov/sites/dfiles/SFH/documents/SFH_FHA_INFO_...
    - linuxftw 9mo ago
      Yeah, those are some of the programs I was referring to. The 'loophole' aspect that was mentioned on the podcast is that when the FHA does the 'loss mitigation' (aka, refi's the loan), there is not any kind of qualification as to whether the buyer will ever be able to make a payment on the new loan. It's just approved anyway, and the cycle can happen unlimited times. I think they're looking at adding a means test, but I'm unsure.
- mbrameld 9mo ago
  It doesn't take years, and it's less expensive than writing off the mortgage.
  - quietsegfault 9mo ago
    In judicial foreclosure states, the process can take 12 to 24 months, and longer if contested or if other periods apply. In nonjudicial states, timelines are shorter but still typically 4 to 9 months from default to sale. Lenders incur legal fees, court costs, property taxes, insurance, maintenance, HOA dues, servicing advances, and loss of interest during the process. Industry estimates often put foreclosure costs in the tens of thousands of dollars per loan, excluding the loss from selling the property below the outstanding balance. “Writing off the mortgage” is not the realistic alternative. Lenders generally compare foreclosure against loan modification, repayment plans, short sales, or deeds-in-lieu, because charge-offs are accounting outcomes after losses are realized, not an operational substitute for foreclosure.
linuxftw 9mo ago
So, the basic process is 1) Borrow stops making payments. 2) Borrow goes into forbearance for 12 months just prior to foreclosure start. 3) Forbearance ends, borrower cannot make current. 4) FHA steps in to do loan modification. Essentially, they roll the forebeared balance into the loan, payoff the existing mortgage, and issue a new FHA-backed loan, without any income or payment ability qualifications. 5) Repeat the process again. So, the government is making everyone whole.