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Thanks for the back up. lol. In all fairness I understand there is no actual law forbidding it. However, no lender will pursue it unless the borrower is foreclosing in bad faith. Odds are it wont be granted.
Modification programs, even principal reduction offers by the government to help both the bank and borrower, and shortsales and deed in lieu as options to all lenders , the judge would ask the lender why they didnt explore these options before foreclosure, and if the borrower is being upfront with the lender, most likely one of these two will be chosen. If so, no lender can act for judgement thereafter.
Its a hard sell to a judge that the lender can simply ignore all those options, foreclose and sue for deficiency balance without repeatedly trying to reach out to the borrower . Even if the borrower ignored these attempts , it would need to be shown to be willfully uncooperative to have any real effect in court. .
So even if all these conditions are met, and the bank has no other recourse, and after this still decides not to take the write off and sue for deficiency , they have to consider a whole new framework.
Debt collections. What are the costs of getting the judgement. What ability does the debtor have to repay the deficiency? Will it drive the debtor into bankruptcy, therefore reneging on all kinds of other debts in the process . Here is a good article on it.
............you are virtually safe from a lender suing for deficiency balance after foreclosure..........
You are right. 99% of the time the lender writes it off and moves on.
Actually this guy clearly points out that your original position was hopelessly incorrect and you now respond "but they wouldn't do it?" rather than your original "they can't do it".
This article does not deal with seconds or other liens which are where you need to be careful.
So no, you are still wrong, even practically.
And you should by now have understood this ain't your field.
My understanding is Nevada had been a recourse state for foreclosures prior to the new law that took effect in 2009.
For a homeowner who obtained a purchase money loan for their property prior to October 1, 2009 and subsequently was foreclosed upon, the 1st lien holder has 6 months to pursue a deficiency judgment for the balance owed to the bank. Junior lien holders (2nd, 3rd mortgages) have a total of 6 years to pursue a deficiency judgement.
Effective October 1, 2009, Nevada became a limited recourse state similar to California. Loans made after October 1, 2009; by a financial institution to a borrower who continuously occupies the property as a primary residence are non-recourse. This means that the lender may not pursue a foreclosed borrower to recover a deficiency. This law does not change the statutes that effects short sales... it only applies to foreclosed homes and borrowers.
I understand your position. 99% they won't got after you, "rare that they could pursue, "almost never will seek a judgement"
That's all dandy.
]
Then how the #$%#$% is it 'Russian Roulette' Nobody considers 1% a notable risk . In fact, its considered by most to be as close to a sure bet as anything in life.
The initial assertion was walking away was playing 'Russian Roulette' . Its dead wrong My assertion is they wouldnt pursue you if its your primary home and in many states they CANT do so .
Actually this guy clearly points out that your original position was hopelessly incorrect and you now respond "but they wouldn't do it?" rather than your original "they can't do it".
This article does not deal with seconds or other liens which are where you need to be careful.
So no, you are still wrong, even practically.
And you should by now have understood this ain't your field.
Nobody here was talking about second mortgages. My assertion was clearly discussing the purchase money mortgage on a primary home. Not helocs thereafter. You have tried to add it in as spin, and you have become increasingly pedantic
I would suspect its due to having 2350 posts in only 9 months on this site. Thats a guy who has a very little going on outside in the real world.
You must realize that even the OP now admits its 99% and to anyone its about as sure a bet in life that there is. Only myopic narcissist believes 1% risk is 'Russian Roulette'.
I guess we know which section you reside in.
Last edited by thomasdavie; 02-25-2013 at 04:55 PM..
You wander away for 6 weeks and then come back with irrelevant insults?
You need a hobby.
Maybe he has an actual life. Thats why he hasnt posted in 6 weeks goof. He also uses his real name and doesnt hide behind the computer using a fake name like you do. Its obvious Thomas Davie is far more upfront and honest.
Thomas Davie stays on point, which is to alleviate the fears of a homeowner that they are NOT playing 'Russian Roulette' . Its Ivoc who keeps trying to change the subject.
Re read the thread. He keeps jumping from angle to angle. Freom pedantic anal point to switching to second mortgages and helocs. None of which was the original point regarding the main mortgage on a owner occupied house.
And its quite funny that the guy who has 2350 posts in 9 months tells the other guy he needs a life . It insults everyone's intelligence.
The Ivoc guy whole motive is to not help the homeowner. Thomas Davie made it very clear that 99%
While I believe Thomas Davie was wrong about the Federal Government having a rule about not pursuing deficiency balances, he has been bang on about the rest of it and even put up a link.
The average Joe and Jane taxpayer, facing bankruptcy has a 99% chance of not being pursued for deficiency balance on their mortgage if they voluntarily give up the home. AKA walk away.
IVOC wants to play mental games . I am not a psychiatrist but it stands to reason his logic is done out of ego. He made a pedantic point that was duly noted long ago. He has no legitimate need to drone on and on.
This thread is funny. Ego maniac on the loose. Cant be wrong on the internet Iroc? Grow up and let it go. You aint even using your real name.
I hope homeowners arent frightened to death and consult with an attorney. The advise you have been given here by Iroc is sure to cause you undo stress. Check with an attorney. I am certain you will be alright
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.
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