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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Like most mortgages, when you default you still owe the entire balance, so the house is not sufficient to pay off the debt unless there is equity.
In every case I have seen that is in the contract, and upon eviction the entire balance is due, so these people have been lucky to go 4 years without the bank having tried to collect. If other lenders are taking this long to pursue these, it sounds like there will be new jobs available for lawyers and collections people.
Going after those who pulled a strategic default so they could bank a bunch of free money on the backs of hard working taxpayers? Sounds good to me.
I agree with this. Harsh for those that do not understand but not harsh for those that know and used it as an exit strategy rather then address the situation.
If someone owed me money I would go after them in court too. Its basic contract law. If they cant pay and want to declare bankruptcy, are free to do so. But if they can pay, I too would want my money. You dont get to cause someone to loose money, even if its a bank, and walk away with no consequences.
If your going to have a foreclosure, you might as well add a bankruptcy to it at the same time. Its already going to kill your credit.
Last edited by 399083453; 06-16-2013 at 08:03 PM..
If your going to have a foreclosure, you might as well add a bankruptcy to it at the same time. Its already going to kill your credit.
Except if the bank didn't try to seek the balance back then, they couldn't have gotten a bankruptcy at the time of the foreclosure. For the first guy in the story, over three years later, he had to do to do a bankruptcy. This is killing his credit for much longer than if it were a single event.
The banks loaned $400,000 to a landscaper, got burned for nearly a third of that when it turned out that house prices were too high because nearly every bank was making stupid loans, took a taxpayer bailout to make it through their tough times, and, as soon as it became politically expedient, started to act as if the financial system rests on the discernment of landscapers and that he really should have known it was a stupid loan because the bank couldn't possibly have found an underwriter or risk assessors without his or her heads stuffed up a colon.
When I said, "file bankruptcy at the same time", I meant the relatively soon after, a day or more later. When a bank forecloses, and gets a judgment, it tells you exactly, to the penny how much you owe them. You use those figures and judgment and add it to your bankruptcy.
He shouldn't have waited 3 years to file bankruptcy. His fault. People have to start admitting responsibility for their mistakes. Everyone plays the victim.
- If you go to the store and buy paint thinner, drink it and get sick, it's your fault.
- If you listen to a drug dealer tell you cocaine will make your life better and you turn into a junkie, it's your fault.
- If you walk into a store and buy a $5,000 tv and swipe your credit card, then can't pay the bill, it's your fault.
- If you listen to a banker tell you, you can buy a $400,000 house and you sign for it, and can't pay the bill, it's your fault.
Blaming someone else and saying you're a victim is easy, admitting to yourself you screwed up, not easy.
People have to start admitting responsibility for their mistakes. Everyone plays the victim.
There are many people who make mistakes. Banks, whose main business is loaning money for profit, have decided to blame people stupid enough to borrow from them for making bad loans. It isn't convincing.
There are many people who make mistakes. Banks, whose main business is loaning money for profit, have decided to blame people stupid enough to borrow from them for making bad loans. It isn't convincing.
The article said he made six figures when he applied for the loan and bought the house. Are you saying the bank should have denied him? LOL. Do you really want banks deciding loans on your "future" ability to pay? How about getting a complete physical and medical history to make sure you don't drop dead next year. High blood pressure? Sorry no loan.
They lend you money based on your ability to pay today..... They don't have a crystal ball.
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