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Stunningly, I was wrong. (Not stunning that I can ever be wrong, but stunning that in this particular case we learned what appears to be the truth.)
Will ya say weasel with me now?
WEASEL!!!! I could think of better adjectives but it would get me put in a long time out....Alas this is what some of us have become..no morals..no scruples and it wouldn't suprise me if he's laughing all the way to the bank.....
makes me want to vomit when I think of so many people losing their homes and not through greediness
As one poster said karma is awaiting for him...and not good karma
Solano
What some folks may call the "trickle down effect" could result in the current credit cards your friend has increasing in the interest rates. Because once the FC hits his credit report not only will his score go down but when his current credit cards do their "review" of his credit report they will tag him as a high risk and can increase his rates.
The lower credit score could also mean higher insurance rates and if he should decide to change jobs his future employer a negative credit report could affect his getting the job. Especially in the financial field.
Also another thing to keep in mind is during the FC process a specialist will be reviewing the mortgage file as well as his credit report.
These are a few things they will be looking for:
1. Has he bought another property or are there any "inquires" from rental agencies on his credit this he has sidestepped by buying the other house in his wifes name.
2. Is he current on everything else he is paying ie credit cards or auto loans
3. Has his listed employer changed.
4. Are there any joint accounts on his credit report.
5. Has he called looking for option because of a severe financial problem
What they are looking for and what I would of determined if I had this come across my desk when I was working as a Foreclosure specialist is the following:
The fact that there are no inquires for new living arrangements and he has to live somewhere and seeing joint accounts would lead to the fact that maybe he is married and since his name is the only one on the original mortgage hmmm could they of bought a house in her name?
The fact that his income is on the original app(and from you saying that he could of afforded the $5k )it is probably a high income.
So now you have someone who makes a lot of money(job info hasn't changed) is paying current on any credit cards or auto loans doesn't "appear" to be paying rent or another mortgage and has never mentioned a financial problem.
I and probably any other foreclosure specialist would "flag" this account as "suspicious" so that when the Judgment of foreclosure is granted and the house is sold at Sheriff sale or through their REO dept for less than is owed that lien is filed against him for the difference. Yes the new law says they don't have to pay taxes on the difference but that doesn't mean that it "goes away"
Depending on the state laws some liens can be renewed for up to 20 years.
There is also the chance again depending on the state laws that the mortgage company could pursue a garnishment against his wages.
Sure some folks are going to say the bank probably won't go through all of this trouble but unless you can guarantee 100% that they won't I would not want the risk of the "trickle down effect"
I hope they do flag it and he gets whats coming to him - having to pay anyway
Solano
What some folks may call the "trickle down effect" could result in the current credit cards your friend has increasing in the interest rates. Because once the FC hits his credit report not only will his score go down but when his current credit cards do their "review" of his credit report they will tag him as a high risk and can increase his rates.
The lower credit score could also mean higher insurance rates and if he should decide to change jobs his future employer a negative credit report could affect his getting the job. Especially in the financial field.
Also another thing to keep in mind is during the FC process a specialist will be reviewing the mortgage file as well as his credit report.
These are a few things they will be looking for:
1. Has he bought another property or are there any "inquires" from rental agencies on his credit this he has sidestepped by buying the other house in his wifes name.
2. Is he current on everything else he is paying ie credit cards or auto loans
3. Has his listed employer changed.
4. Are there any joint accounts on his credit report.
5. Has he called looking for option because of a severe financial problem
What they are looking for and what I would of determined if I had this come across my desk when I was working as a Foreclosure specialist is the following:
The fact that there are no inquires for new living arrangements and he has to live somewhere and seeing joint accounts would lead to the fact that maybe he is married and since his name is the only one on the original mortgage hmmm could they of bought a house in her name?
The fact that his income is on the original app(and from you saying that he could of afforded the $5k )it is probably a high income.
So now you have someone who makes a lot of money(job info hasn't changed) is paying current on any credit cards or auto loans doesn't "appear" to be paying rent or another mortgage and has never mentioned a financial problem.
I and probably any other foreclosure specialist would "flag" this account as "suspicious" so that when the Judgment of foreclosure is granted and the house is sold at Sheriff sale or through their REO dept for less than is owed that lien is filed against him for the difference. Yes the new law says they don't have to pay taxes on the difference but that doesn't mean that it "goes away"
Depending on the state laws some liens can be renewed for up to 20 years.
There is also the chance again depending on the state laws that the mortgage company could pursue a garnishment against his wages.
Sure some folks are going to say the bank probably won't go through all of this trouble but unless you can guarantee 100% that they won't I would not want the risk of the "trickle down effect"
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.
Stunningly, I was wrong. (Not stunning that I can ever be wrong, but stunning that in this particular case we learned what appears to be the truth.)
Will ya say weasel with me now?
He was precisely my case 2 - which you declined to address. He is a half a weasel. That of course is the case most difficult to deal with. Case 1 is not a weasel. Case 3 is a weasel. Two is somewhere in between.
Again though I admire the absolute clarity with which the members of this list can determine the good and evil. No gray here.
He was precisely my case 2 - which you declined to address. He is a half a weasel. That of course is the case most difficult to deal with. Case 1 is not a weasel. Case 3 is a weasel. Two is somewhere in between.
Again though I admire the absolute clarity with which the members of this list can determine the good and evil. No gray here.
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.
He was precisely my case 2 - which you declined to address. He is a half a weasel. That of course is the case most difficult to deal with. Case 1 is not a weasel. Case 3 is a weasel. Two is somewhere in between.
Again though I admire the absolute clarity with which the members of this list can determine the good and evil. No gray here.
please, the second home was bought in the wifes name only so she must of had enough income to be approved
between the 2 of them they couldn't ride out the storm and make the payments on the first house
First, you do not pay taxes on "borrowed" funds, which is what this guy did, borrow funds against the mortgage. Then on top of this, the government recently made the "mortgage forgiveness losses" non taxable, when you lose your home due to forclosure.
If he cashed out on the first home (HELOC 2005), the government will not forgive this one. It is only for people who purchased homes from 2005 to July 2007 - no cash outs, purchase money only.
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.
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Buying a 2nd home...
