Lenders Pursue Mortgage Payoffs Long After Homeowners Default
- Thread starter ASusilovic
- Start date
That depends. If he put at least 20% down, got a no gimmicks fixed rate mortgage, had carefully worked out his budget and determined that he could afford the payments, but later lost his job and couldn't get another one, then I feel sympathy for the guy.
If he put 5% down, got a gimmicky teaser rate mortgage, never bothered to work out his monthly expenses, and just planned to sell the house two years later to a bigger fool, then, no, I don't feel any sympathy.
Anyone hear about Blackrock recently walking away from its commitments despite easily being able to afford the loss? No comments on that? But hey, lets jump all over this guy who doesn't relish the idea of being an indentured servant the rest of his life.
Corporations routinely use strategic default as a business strategy, even when it means screwing over retirees relying on a pension they have paid in to all thier working life or their health care benefits. To hold one's self to a morale standard that would apply when dealing with an other individual when dealing with a corporation is pretty stupid especially when most of the laws are written by corporate lobbyists and the playingfield is anything but flat. Its business, its nothing personal. If strategic default is a viable and costless option for one party to a transaction then it should be to the other party too.
When Citi returns the BILLIONS it defrauded from its customers by selling them Lehman bonds as though they were actually guaranteed by Citi in the weeks before Lehman went under, well, then lets talk about the morale obligation of the individual to his banker.
Corporations routinely use strategic default as a business strategy, even when it means screwing over retirees relying on a pension they have paid in to all thier working life or their health care benefits. To hold one's self to a morale standard that would apply when dealing with an other individual when dealing with a corporation is pretty stupid especially when most of the laws are written by corporate lobbyists and the playingfield is anything but flat. Its business, its nothing personal. If strategic default is a viable and costless option for one party to a transaction then it should be to the other party too.
When Citi returns the BILLIONS it defrauded from its customers by selling them Lehman bonds as though they were actually guaranteed by Citi in the weeks before Lehman went under, well, then lets talk about the morale obligation of the individual to his banker.
+1
Florida does not have anti deficiency laws. 1st or 2nd when bank forecloses it can get a deficiency judgment.
CA and some western have some anti deficiency laws.
CA has two well known ones.
ccp 726 - the one action rule
Foreclosing lender waives right to deficiency if the lender forecloses in non judicial manner (note this would not prevent a sold out junior with a recourse loan from collecting the full amount of the second.) which is why I advise people to pay the first until the second agrees to a short payoff (in certain circumstances.)
ccp 580b
Original loans on your dwelling (personal residence) are non recourse after a foreclosure. Does not matter if they are 1st second or both.
This law (generally) does not apply to most refi's or loans made on income properties.
CA and some western have some anti deficiency laws.
CA has two well known ones.
ccp 726 - the one action rule
Foreclosing lender waives right to deficiency if the lender forecloses in non judicial manner (note this would not prevent a sold out junior with a recourse loan from collecting the full amount of the second.) which is why I advise people to pay the first until the second agrees to a short payoff (in certain circumstances.)
ccp 580b
Original loans on your dwelling (personal residence) are non recourse after a foreclosure. Does not matter if they are 1st second or both.
This law (generally) does not apply to most refi's or loans made on income properties.