Foreclosure and short sale not always something that is over and done at closing (short sales, 2014)

[bentlebee]

As many will find out ....sooner than later they may get a call or mail delivered unless they had it in writing that the lender waived the deficiency which happened in many short sales, but otherwise...


"Debt collectors can call years after a foreclosure



WASHINGTON – Oct. 15, 2014 – Thousands of Americans who lost their homes to foreclosure years ago have moved on and rebuilt their finances, only to find that their past problem isn't staying in the past.

In more and more cases, mortgage lenders are contacting these homeowners and attempting to collect the debt forgiven as part of a short sale or foreclosure.


"Using a legal tool known as a 'deficiency judgment,' lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come," Reuters reports. (Effective July 1, 2013, the lender has one year on residential properties to initiate the process.)"


Debt collectors can call years after a foreclosure

[Vannort54]

Banks re not even doing short sales anymore. They are just sitting on the properties.

[gulfer]

This doesn't surprise me a bit. For those that walked and could afford to remain, it makes sense. For those that lost everything it doesn't. My opinion only of course.

[PhotoProIP]

Sure, it makes a lot of sense to continually harass people over their own mistakes! They should have never allowed those who couldn't afford homes to buy them! None of this would have happened.

Funny, how they're always running to torment the poor.

I do hope they are truly going after those who could have paid, and not the others that got screwed thanks to these unscrupulous people's greed!

[bentlebee]

After have seen many tax returns and bank statements and listening and answering questions that you could know why they were asked and see how people spend the money and tried to hide insurance money, etc. I know that at least 2/3 of the short sales we were involved in were for people who did calculated short sales.

Many people wanted afterwards extremely high rent amount rentals and if they can spend $1700 for rent a month they could also have paid their mortgage and even if that wasn't the case to us it was always amazing how home owners were able to save years of not paying a dime for monthly mortgage payments and the money wasn't in their accounts.

How many times people wanted to list and waited 3 month or more to list their house since they were able to get the info that banks didn't care for more than bank statements for longer than 3 months after the contract was signed and even thou they needed to provide updated statements and pay stubs which often was too much to ask since sellers were annoyed by that, it was shocking where all that money went so for these cases I really don't mind if they are going after some of them.

For the people who lost their job or had less income or even worse, dealt with illnesses it is sad that they got in that position but it will be very strange if the mortgage companies will go after one of them.

Many people stood by and saw home owners down the street drive in fancy cars, go on vacation, plastic surgery, etc. which we all can agree is something great if you can afford it but most of us had to pay their mortgage or paid for what they are/were responsible for while others walked away...that is not about being jealous but many did the right thing and are still in their homes while some already after a short sale bought homes when the prices were at the bottom and are bundling equity which is fine but I don't feel guilty or sorry if the lenders try to get some money back from them.

It is a free country and free market and using the system in a legal way is fine but many lied to get the mortgage and lied to conduct a short sale so do I feel sorry if they are going after them...NO!

[Tim Tim Tim]

I was actually talking to a mtg broker not too long ago about this.. I did a deed in lieu about 5 years ago, apparently that looks like a foreclosure when going for another mortgage, I made a comment like "I should have just sat in the house for years if it did me no good credit wise to go about it the "right way" (I did lose my job which caused the issues). That is when he informed me of banks and creditors coming after previous foreclosures with law suits to get their money. Guess I did make the right move

[bentlebee]

Originally Posted by Tim Tim Tim

I was actually talking to a mtg broker not too long ago about this.. I did a deed in lieu about 5 years ago, apparently that looks like a foreclosure when going for another mortgage, I made a comment like "I should have just sat in the house for years if it did me no good credit wise to go about it the "right way" (I did lose my job which caused the issues). That is when he informed me of banks and creditors coming after previous foreclosures with law suits to get their money. Guess I did make the right move

If your deed in lieu is saying that your deficiency is forgiven than your are good otherwise you may be in the same boat but the lenders are saying that they may go after people who di what we call calculated short sales.

They go after the ones who probably have new homes bought or cars paid off...they will not waste time and money to go after someone who doesn't have a penny and there are plenty who live the good life and bought nicer homes afterwards and multiple cars and than let go of their houses and left us with homes in distress while they were even bragging how smart they were.

One on my street did that. Had breast and butt plastic surgery...car after car was bought all from the equity they got out of their house by getting an appraiser giving them and over the top appraisal and after they bought a new house (she became a mortgage broker during the process) and bought a nice house in an acre of land and than left the house which was in such a distress and it was sold for $300 k less than the value the appraiser gave it even though we knew it was never worth that amount.

I wouldn't mind if they would go after here since it usually is who has the last laugh since that had nothing to do with falling on hard times. Luckily the new buyer who bought it dirt cheap made it beautiful and we are glad he and his family moved in and helped to make the street look nicer but it took them a long time.

That is one of the many examples we have seen and has nothing to do with loss of income, illness and hardship...that is called American Greed and lenders should go after people like that since they have property to put a lien against.

[PhotoProIP]

Originally Posted by bentlebee

They go after the ones who probably have new homes bought or cars paid off...they will not waste time and money to go after someone who doesn't have a penny and there are plenty who live the good life and bought nicer homes afterwards and multiple cars and than let go of their houses and left us with homes in distress while they were even bragging how smart they were.

How is it even possible for someone that abandoned a property to buy another one? How do they bypass credit checks? Or better yet: who are these lenders continually borrowing money to people who had properties foreclosed on?

I don't understand how these people are STILL able to buy homes!? A foreclosure completely ruins someone's credit, so how can they get MORE credit to buy another house? This makes no sense.

[gulfer]

It is very well documented that it takes about 1.5 to 2 years after the short sale or foreclosure to get a new loan. Interest rate is more than likely higher, but if they have a good documented income, banks are lending to them again.

I am not saying it's right, but it's happening.

Banks are greedy and we never learn. Crony capitalism at it's finest IMO

[BucFan]

Banks are businesses looking to make a profit like any other company. I can't get on the bandwagon against them -