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Old 02-03-2010, 02:09 PM
 
Location: Cave Creek, AZ USA
1,775 posts, read 6,353,238 times
Reputation: 1071

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Deficiencies are nothing new. That lady in VA should have talked with a lawyer, since everyone in the biz knows VA is a deficiency clause state. AZ is not. If banks have to pay you anything they made above your balance and fees when selling your foreclosed house, why shouldn't they be able to come after you for a shortfall too? Can't have it both ways.
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Old 02-03-2010, 02:21 PM
 
Location: Phoenix
3,995 posts, read 10,013,633 times
Reputation: 905
Quote:
Originally Posted by sierraAZ View Post
Wow, there's a new twist to this story, though! Fresh out of the oven!

Mortgage lenders pursue homeowners even after foreclosure - Yahoo! Finance (http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?x=0 - broken link)
That is become in some states (Arizona and California not being one of them) lenders can come after you for deficiencies between the collateral (the home) and the amount owed. Most states have mortgages that operate on two clauses; a secured debt represented by the house, and the promissory note to pay off the loan and like the article states, in those states the secured debt can turn into an unsecured one after a short-sale or foreclosure. One has to ask the bank/court for "release" from any obligation to pay deficiencies.
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Old 02-03-2010, 02:29 PM
 
Location: Tucson
42,831 posts, read 88,130,581 times
Reputation: 22814
Quote:
Originally Posted by Rick Lee View Post
Deficiencies are nothing new. That lady in VA should have talked with a lawyer, since everyone in the biz knows VA is a deficiency clause state. AZ is not. If banks have to pay you anything they made above your balance and fees when selling your foreclosed house, why shouldn't they be able to come after you for a shortfall too? Can't have it both ways.
I always thought there was going to be something fishy about these short sales. The banksters can't let go of their money that easily. Wouldn't think this would apply to foreclosures, though. To me a foreclosure pretty much is the equivalent of bankruptcy.
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Old 02-03-2010, 03:20 PM
 
2,324 posts, read 7,619,764 times
Reputation: 1067
Quote:
Originally Posted by Rick Lee View Post
Deficiencies are nothing new. That lady in VA should have talked with a lawyer, since everyone in the biz knows VA is a deficiency clause state. AZ is not. If banks have to pay you anything they made above your balance and fees when selling your foreclosed house, why shouldn't they be able to come after you for a shortfall too? Can't have it both ways.
The law says you can walk away, so people do. I know a guy in Florida, $900,000 homes are selling in his subdivision for under $300,000 now. He is not walking away, he is running. Get upset with the politicians who made all this possible, not the people who won't make their mortgage payments.

The bank can come after you if you never lived in the house, I don't know what other circumstances would warrant that. All you have to do is show utility bills or mail addressed to the house and you can walk away.
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Old 02-03-2010, 03:43 PM
 
Location: Verde Valley
4,374 posts, read 11,222,853 times
Reputation: 4053
Quote:
Originally Posted by Howard Roark View Post
I wish I can do that on my Toyota stock. I lost 45%. Why can't I walk away from my responsiblity of losing my bet?
I'm sure it will come back...isn't the loss just due to the current issue with them?
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Old 04-22-2010, 05:14 PM
 
1 posts, read 1,297 times
Reputation: 10
Unhappy Protecting Assets from Investment Property Foreclosure

I am upside down with a rental property that goes over $1,000 negative monthly even when occupied by tenants. It is a Countrywide ARM loan from 2007. Bank of America has offered no help. If I walk away from the rental property how do I protect my personal assets, including my home and other rentals? We are in Washington state? Thanks.
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Old 04-22-2010, 09:34 PM
 
Location: USA
3,966 posts, read 10,694,869 times
Reputation: 2228
Quote:
Originally Posted by Bummer View Post
I could not agree more!

We can all thank BLATANT GREED for this wonderful fiasco.
<sarcasm>You mean there is more to life than great wonderful me? You mean there are other people in this country? </sarcasm>

I really hope in the next few years people will see that homes should not be used as an investment, but instead somewhere to live so you're not homeless.
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Old 04-24-2010, 10:10 AM
 
365 posts, read 423,323 times
Reputation: 381
The banks are whole...thank you government bailouts....
its the poor folks who got into a PREDATORY loan that are not....
I keep waiting for someone to walk down Wallstreet with a machine gun.
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