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Old 02-26-2013, 01:17 PM
 
12,973 posts, read 12,163,054 times
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Quote:
Originally Posted by SmartMoney View Post
LOL, I'm still not sure where this train is going to stop. How about some real world observations?

I pull, review and evaluate at least a dozen credit reports a week, probably more. I am one of several loan officers in my branch, where many of them will come to me for assistance with their reports. My observations on the east coast (in no particular order) are as follows:

Short sales with seconds, invariably find their 2nd trusts converted to signature revolving lines or installment notes, typcially resulting in a future BK. They file for BK, not because their wages have been garnished (have not seen that happen once, it must be rare), but because the non-payment of the 2nd is stopping them from purchasing again. I have not seen any deficiency judgments, which I would imagine would be required prior to garnishment. I have not seen a 1st lien holder come after the borrower post short sale or foreclosure. What I have seen is the mortgage history recorded in such a way, it screws up the ability for the borrower to obtain future credit. (They will record it as an M8, M9, or MU and shut down any future mortgage loans for at least a good 3 years).

What I have seen is an alarming rate of strategic foreclosures, foreclosures where the individuals chose not to stay in their home due to negative equity and their desire to move up. Our current laws have made this too easy and the rest of us are footing the bill.
Again I suspect a localism. In NV it would be very close to malpractice for an RE Agent or even a lawyer to have a client accept a short sale without clearing the second. The term is almost standardized. $3,000 for the second. It is virtually automatic here. If a client insisted on taking such a deal without clearing the second the RE Agent would have them sign a disclosure that they understood the ramifications fully.

Lacking the clearance of significant second the recommendation is generally to go to foreclosure and then BK - often sold as a package.

Note that the majority of the transactions in Las Vegas for the last five years have been shorts and REOs. We have, of necessity, developed strong knowledge of the process.

Strategic foreclosures or shorts are a way of life here. The lenders now go along as they lack any good alternative. The lender loses more money on a foreclosure and a judgement than on a short sale. Particularly if the seller is able and willing to defend their position. Just business.
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Old 02-26-2013, 02:23 PM
 
1,067 posts, read 944,922 times
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Any knowledge or experience with Chase offering Relocation Incentives(cash for keys) in 2013 in Las Vegas on qualified loans? HAFA not a possibility as loan was closed after May 2009.
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Old 02-26-2013, 09:23 PM
 
Location: MID ATLANTIC
7,606 posts, read 17,664,631 times
Reputation: 8102
Quote:
Originally Posted by lvoc View Post
Again I suspect a localism. In NV it would be very close to malpractice for an RE Agent or even a lawyer to have a client accept a short sale without clearing the second. The term is almost standardized. $3,000 for the second. It is virtually automatic here. If a client insisted on taking such a deal without clearing the second the RE Agent would have them sign a disclosure that they understood the ramifications fully.

Lacking the clearance of significant second the recommendation is generally to go to foreclosure and then BK - often sold as a package.

Note that the majority of the transactions in Las Vegas for the last five years have been shorts and REOs. We have, of necessity, developed strong knowledge of the process.

Strategic foreclosures or shorts are a way of life here. The lenders now go along as they lack any good alternative. The lender loses more money on a foreclosure and a judgement than on a short sale. Particularly if the seller is able and willing to defend their position. Just business.
The second trust lender releases the lien to the property without issue. They just convert their note from real estate secured to signature secured, which is a provision of the note.
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Old 02-26-2013, 09:27 PM
 
12,973 posts, read 12,163,054 times
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Quote:
Originally Posted by SmartMoney View Post
The second trust lender releases the lien to the property without issue. They just convert their note from real estate secured to signature secured, which is a provision of the note.
Uhh no. They discharge the debt. Or you don't sell.

We all know the proper language. Again it has been a very large portion of our business for five years.

We do understand how it works
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Old 02-27-2013, 10:23 PM
 
21 posts, read 39,041 times
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[quote=lvoc;28437603]Uhh no. They discharge the debt. Or you don't sell.

We all know the proper language. Again it has been a very large portion of our business for five years.

We do understand how it works[/QUOTE]

You have no business. You wouldnt be hiding behind the internet using a fake name posting thousands of times if you actually had a job.

Anyone can google the information but the rest of the way you act screams of a shut in, sitting on the internet all day.

Stop trying to make it seem like you know what you are talking about.
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Old 02-27-2013, 10:26 PM
 
21 posts, read 39,041 times
Reputation: 21
Quote:
Originally Posted by SmartMoney View Post
The second trust lender releases the lien to the property without issue. They just convert their note from real estate secured to signature secured, which is a provision of the note.
This is correct. Quite often, its parceled off to collection agency and settled for pennies on the dollar. Happens all the time. Agency gets 1/3 of monies collected.
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