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Status:
"48 years in MD, 18 in NC"
(set 8 days ago)
Location: Greenville, NC
2,309 posts, read 6,100,090 times
Reputation: 1430
There is another, large reason not to do a strategic default. If the house sells at auction for less than is owed the holder of the deficiency has up to 20 years to recoup that deficency. It is standard practice at the current time to not persue these deficiencies. The holders of this debt are making stategic plans of their own. They are waiting for the economy to improve, along with the financial situation of the debtors, before proceeding with court action. This is legal in many states and you should consult with an attorney to see what the exact timeline is in MD.
This I DO know. A long time friend of mine that I've known since elementary school got a phone call last year from a collection agency. He had bought a car in 1995 and it ended up being repossessed after a couple of months. He had completely forgotten about the car but the collection agency hadn't. This occurred in MD.
There is another, large reason not to do a strategic default. If the house sells at auction for less than is owed the holder of the deficiency has up to 20 years to recoup that deficency. It is standard practice at the current time to not persue these deficiencies. The holders of this debt are making stategic plans of their own. They are waiting for the economy to improve, along with the financial situation of the debtors, before proceeding with court action. This is legal in many states and you should consult with an attorney to see what the exact timeline is in MD.
This I DO know. A long time friend of mine that I've known since elementary school got a phone call last year from a collection agency. He had bought a car in 1995 and it ended up being repossessed after a couple of months. He had completely forgotten about the car but the collection agency hadn't. This occurred in MD.
Yes. Never "walk away". Financially savvy people know this.
Walking away is just a media term and applies in non recourse states like California. But those in recourse states still strategically default but always negotiate with this lender for a short sell so they aren't liable for any further amount.
People in recourse states these day stratetically choose not to pay. Than ramp up these revolving debt (lease expensive cars etc) to show the banks they have more money going out than in.
If all else fails, put as much money into your retirement account as possible and than declare BK.
There are many ways to "walk away" and not be liable for future debt.
There is another, large reason not to do a strategic default. If the house sells at auction for less than is owed the holder of the deficiency has up to 20 years to recoup that deficency. It is standard practice at the current time to not persue these deficiencies. The holders of this debt are making stategic plans of their own. They are waiting for the economy to improve, along with the financial situation of the debtors, before proceeding with court action. This is legal in many states and you should consult with an attorney to see what the exact timeline is in MD.
In Maryland, a deficiency judgment is good for 12 years if the note, deed of trust or mortgage was signed "under seal." Otherwise, the foreclosure statute limits the time to 3 years. The statute of limitations varies widely among states - from a few months to years.
This I DO know. A long time friend of mine that I've known since elementary school got a phone call last year from a collection agency. He had bought a car in 1995 and it ended up being repossessed after a couple of months. He had completely forgotten about the car but the collection agency hadn't. This occurred in MD.
Hope your friend didn't pay it. The debt was probably barred by the SOL but collectors routinely rely on the debtor's ignorance and try to collect, anyway.
Not if they can rent this property, which they clearly can do.
Citimortgage 1st and Greentree 2nd accepted that reason to approve my shortsale. How many people can afford to RENT a $5400/month house in a bedroom community?
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