Goldman Sachs Forecloses on 10,000 Homes for ‘Consumer Relief’

There is some dizzying spin in this article.

Mr. Daly, a retired auto mechanic who has lived in the home for 22 years, said the firm that Goldman had contracted to manage his mortgage — Shellpoint Mortgage Servicing — was unwilling to consider a loan modification unless he made a $14,000 payment upfront. Then, just a few months after his wife, Susan, died of complications from cancer, he heard from lawyers for Goldman’s mortgage subsidiary — MTGLQ Investors, short for mortgage liquidation. They told him that they were pushing ahead with foreclosure.

Mr. Daly, 61, was able to keep his house only because his frantic online searching turned up information on New Jersey’s foreclosure relief fund, which gave him a $49,000 grant to pay off the delinquent fees and resume his monthly payments.

Goldman declined to discuss Mr. Daly’s case, but it defended its handling of the mortgages it had bought, saying it does better by homeowners than other firms that operate in the same market.
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So he, the debtor, defaulted on his mortgage to the tune of $14,000 (likely more) and for some reason expected relief from the lender after demonstrating he's not even capable of making even the smallest payment? Explain to me how Goldman is evil here.


In the niche market for buying distressed loans or foreclosed homes, Goldman is second in foreclosures over the past four years to the combined affiliates of Lone Star Funds, a Dallas private equity firm, according to an analysis compiled by Attom Data, a real estate information firm.
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If you're buying distressed assets you aren't doing it for charity. Buy distressed assets, foreclose on the ones you can flip quickly and leave the rest to rot until you can find someone to either buy the pieces or sell the loan again. This is simple business.

Mr. Daly, who lives mainly on disability payments, said it was a grueling ordeal made harder by the death of his wife.

“It caused lots of stress,” he said.
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The spin stops after making you puke. They finally reveal the real message here - "we need to socialize houses for our poor overdebted poor homeowners who have no capability to pay for their loans". "Why can't someone who's on fixed income afford a mortgage thanks Trump".

I can't understand why this man needs a house. If he has 22 years worth of mortgage payments he's built up equity. He could've at any time refinanced it or sold it off to claim that equity and move into a place more affordable for his living conditions. After the foreclosure and the bank takes their chunk of the equity to pay off his debt the rest of the cash is his. Go find a cheap apartment and live in section 8 housing. Government housing is designed exactly for this man's situation. Homeownership is a privilege not a right.

I cannot for the life of me understand the purpose of this article except to re-open scars and remind everyone "hey, Goldman is evil remember" even though they're fulfilling their debt to society and also trying to run a business.

I don't want to sound crass and heartless here. I'm fully a proponent of opening up sections of otherwise unused areas and building thousands of tiny homes on them, offering them at a price point that low income people can afford - perhaps in the area of $15,000-$65,000 with a similar mortgage situation. There's no reason a person who can't even afford to eat needs a 4 bedroom house. This article is propaganda.
 
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Hire nd fire. Your security of today is gone by tomorrow. Your costly insurance only covers what it wants to. Most Americans live paycheck to paycheck, having less then 400$ in savings, many in debt. That's the foundation American society is built on. No need to say it will strike back at some point. Guess what: Corona is the moment it got ugly.
 
Btw it is not profitable to care elderly or disabled people. In fully liberal society there is no money for this kind of activity. They end up as homeless and/or junkies. Many European countries have decided they will not tolerate their weakest to be left alone. Call it socialism, to me it is greatness.
 
gaussian said:
There is some dizzying spin in this article.



So he, the debtor, defaulted on his mortgage to the tune of $14,000 (likely more) and for some reason expected relief from the lender after demonstrating he's not even capable of making even the smallest payment? Explain to me how Goldman is evil here.




If you're buying distressed assets you aren't doing it for charity. Buy distressed assets, foreclose on the ones you can flip quickly and leave the rest to rot until you can find someone to either buy the pieces or sell the loan again. This is simple business.



The spin stops after making you puke. They finally reveal the real message here - "we need to socialize houses for our poor overdebted poor homeowners who have no capability to pay for their loans". "Why can't someone who's on fixed income afford a mortgage thanks Trump".

I can't understand why this man needs a house. If he has 22 years worth of mortgage payments he's built up equity. He could've at any time refinanced it or sold it off to claim that equity and move into a place more affordable for his living conditions. After the foreclosure and the bank takes their chunk of the equity to pay off his debt the rest of the cash is his. Go find a cheap apartment and live in section 8 housing. Government housing is designed exactly for this man's situation. Homeownership is a privilege not a right.

I cannot for the life of me understand the purpose of this article except to re-open scars and remind everyone "hey, Goldman is evil remember" even though they're fulfilling their debt to society and also trying to run a business.

I don't want to sound crass and heartless here. I'm fully a proponent of opening up sections of otherwise unused areas and building thousands of tiny homes on them, offering them at a price point that low income people can afford - perhaps in the area of $15,000-$65,000 with a similar mortgage situation. There's no reason a person who can't even afford to eat needs a 4 bedroom house. This article is propaganda.
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Not only 22 years of equity, but 22 years of home appreciation. It seems likely he refinanced and cashed out a lot of money.

It's just insane to me that he can be 61 and lived in his home for 22 years and not have at least $14k in the bank.
 
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