Buying a 2nd home then foreclose the 1st home... (home loan, California, non-recourse)

[MotleyCrew]

I hope the FBI catches up to these people. It is fraud no matter how you shake and bake it. I am puzzled by today's mentality that people can agree to any contract to purchase items that they feel they deserve and just walk from the contract, but first steal equity money from the lender and then walk. That is theft and fraud. Tell your friend to grow up.

[70Ford]

You ever see someone in a parking lot hit another car, get out, take a look at the other car, then look at their car, then look around to see if anyone is watching - and then drive off?

You walk over there and there's a fist sized dent in car # 1.

Well, that dude - he got away clean, didn't he? It ain't like it was his fault. If that car hadn't had been there, it wouldn't have gotten hit. It was so tantalizing. Darn GM. Darn them to hell. If they hadn't made cars so tantalizingly hittable, he wouldn't have hit it. I blame GM and the guy who parked the car.

Makes about as much sense as blaming a banker for "making" you get a loan.

If you were at your loan signing appointment and had a loaded gun pointed at your head, with a guy standing there saying "Sign the agreement or you will die." raise your hand.

Yeah. Ok.

[Karla with a K]

Originally Posted by olecapt

This is CA not FL. Non judicial foreclosure. In general no deficiency judgements. Not absolutely impossibe...but so rare that nobody would know how to deal with one.

You don't really think that there is really significant review of foreclosures do you Karla? You have not followed that a number of foreclosures are getting thrown out because the bank cannot prove ownership? You are aware that Countrywide got nailed making up phony letters notifying defaulters of various things?

The banks are melting down in the processing Karla...try and get a straight story on anything...

So the miscreants punishment is a possible increase in credit card rate? With three years of good history that will all vanish. By five he will be able to get a reasonable mortgage.

Thats why I said depending on the state boy I wish I was handling FC for his bank
A lot will also depend on the lender we don't know if he went through a sub-prime. But form what I can gather I will bet he didnt go sub-prime
"A" paper lenders will review the FC closer.
The 2 major banks I worked for one for FC and the other for litigation we would review accounts for these flags.
A little OT but I had a guy that wanted a 30% settlement on his account or he would "file BK" a quick review of his credit report showed 3 inquires by pool companies now the average pool in that area ran around $30k. needless to say no settlement

I have real issues with the scam brokers & subprime lenders out there that encouraged homeowners to "fudge" their income on stated loans they are as much to blame as the homeowners who "misquoted" their income to get loans.
It amazes me that the subprime lender are crying that they are losing so much money, but you know what they seem to avoid mentioning the tons of money they made from these loans.

Folks that are trying to stay in their home yes the banks need to work with them.
But from what the OP told us about his friend he "worked the system"
To suit his wants.

[Karla with a K]

Originally Posted by bxlefty23

how is forclosing dishonest? giving up the house is the penalty you pay for not making house payments plain and simple. If he sold the house, pocketed the money and fled the country never paying the bank that would be dishonest.

bxlefty
In some cases a FC is not avoidable due to major financial crisis or serious family ilness someone may encounter.
in the OP friends case he decided to FC because it did not fit his time line of wanting to retire in 15 years not because there was a serious financial issue or major family illness.

Originally Posted by olecapt

Why are we pursuing that line? Why don't we give him the benefit of the doubt and simply admire his skill in beating the system?

I think the reason this thread has attracted so many varied responses is because I think it has hit folks from the moral sense. Yes he so far has "beaten the system"

Working for 2 major banks we were actually trained on how to "beat the system" so we would know what to look for. It is actually amazing stuff.
So just because I could turn around tomorrow and walk away with $100k in cash advances from my cards and cash out on my house and walk away and buy a new one does that make it right.

oh and BTW I will not share these how to's so no DMs please

[nic529]

Originally Posted by bxlefty23

how is forclosing dishonest? giving up the house is the penalty you pay for not making house payments plain and simple. If he sold the house, pocketed the money and fled the country never paying the bank that would be dishonest.

Foreclosing in this man's case would be dishonest. What he is saying is that he doesnt want to keep paying for a house that has lost value (like most home right now) so instead of having to weather the storm he's just going to have his wife put a house in his name and then stop paying for the first one until the bank takes over and then can't get what he owes back. He has enough money - he's not in any kind of hardship - he just doesnt want to.

So - maybe when his kids were bad or he and his wife were fighting he just left them and got new ones

he is SCUM

[nic529]

Originally Posted by Karla with a K

oh and BTW I will not share these how to's so no DMs please

LOL - awwwww

[njkate]

Originally Posted by Karla with a K

bxlefty

oh and BTW I will not share these how to's so no DMs please

Oh c'mon now Karla we don't want this weasel to stand alone in his dishonesty

[njkate]

After reading this thread and commenting as well, it is good to see that for most of us this leaves a bad taste in our mouths

[MotleyCrew]

I remember our first house and closing at 17 3/4%. We came close to losing the home 5 mos after we moved in when my husband lost his job. This was back in 81 and it was a real recession. We managed to scrimp and toil and hung on to our home. Foreclosure would have been crushing to us. When interest rates dropped to a whopping 9 3/4 % we refinanced and again later on at 7 3/4 percent. We had also seen a drop in home values during the first year, but holding on to our home was most important to us, not walking away.

[pghquest]

Originally Posted by RoaminRed

And he's setting such a STELLAR example for his children. "Look kids, if you make bad decisions because you didn't think things through, or were greedy, you can just run away from them and let someone else take the hit." Oh yes, he's a wonderful family man.

I dont recall reading where the "example to their children" was brought up as a concern of the OP. Please point it out.