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Old 02-03-2010, 01:28 PM
 
Location: Columbia, MD
553 posts, read 1,700,482 times
Reputation: 400

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Mortgage lenders pursue homeowners even after foreclosure - Yahoo! Finance (http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?x=0 - broken link)

I mean, is it really a surprise that banks would pursue these? I think I posted here a while ago that for non recourse states, it was only a matter of time until the lawyers working at the firms pursuing these cases would catch up, and go after homeowners.

This is a classic "lose-lose" situation. If Bank A that held Joe & Jane's mortgage goes after them, they may get something, but if they force Joe & Jane into bankruptcy, it may hurt other banks who hold other debt (credit, auto, other loans).

And Joe & Jane, who were on their way to living responsibly after their foreclosure are subjected to additional years of bad credit on their records.
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Old 02-03-2010, 01:45 PM
 
845 posts, read 2,318,211 times
Reputation: 298
Great article. Especially about the collection agencies buying the notes. I don't think they plan on using them for wall paper.

I wonder if they cover these items in short selling school?
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Old 02-03-2010, 02:05 PM
 
Location: MN
761 posts, read 3,403,661 times
Reputation: 447
This is what I was waiting for.... For all those people that thought walking away because their house wasn't worth what they owed thought it was a no brainer...

Kharma at it's best..
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Old 02-03-2010, 02:11 PM
 
Location: Cary, NC
43,010 posts, read 76,500,303 times
Reputation: 45323
Quote:
Originally Posted by adolpho View Post
Great article. Especially about the collection agencies buying the notes. I don't think they plan on using them for wall paper.

I wonder if they cover these items in short selling school?
Short sales classes do cover this. At least, some of them do.

Short sellers would be smart to have legal representation. Not just a closing attorney, but full legal counsel to tell them what they face, and to negotiate the deficiency away.

I can represent a seller, but as a real estate agent.
I can't be his attorney.
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Old 02-03-2010, 02:17 PM
 
Location: Illinois
718 posts, read 2,071,264 times
Reputation: 987
How come we don't have people walking away in droves from their car loans? After all, these cars aren't worth what was paid for them the minute they are driven off the lot. This "isn't worth what I paid for it" thought process is a contrived excuse to walk away from debt and then because you walked away from what you agreed to pay, no on is supposed to come after you? Come on....grow up. Live within your means people.
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Old 02-03-2010, 02:29 PM
 
Location: Columbia, MD
553 posts, read 1,700,482 times
Reputation: 400
I wonder how this plays into the populist message if it becomes a front page type story over the summer.

I can see it now...the administration will say it will go after "fat cat bankers" who "made irresponsible loans" then "wouldn't modify the loans to prevent foreclosure/short sale" and then "went after the homeowners, who were in the situation because of a job loss or medical calamity".

A single mother/father with children will be on the front page of the NYT in jail, because they couldn't pay a deficiency judgment after they foreclosed because they were laid off from their job.

Six in one half dozen in the other...this may be more like a lose-lose-lose (bank, ex-homeowner, economy).
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Old 02-03-2010, 02:48 PM
 
Location: Barrington
63,919 posts, read 46,434,424 times
Reputation: 20674
It's obviously a slow news day for something like this to hit the fan.
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Old 02-03-2010, 02:59 PM
 
14,984 posts, read 23,754,305 times
Reputation: 26468
So there is justice in this world! Thank God. Not that I want the banks to get all this money, but neither do I want the freeloaders to get away scott free and myself as a taxpayer (under Obama's bail-out-everyone program) to pay for it all.

Oh no the f work - freeloaders, did I say that? Oh no I meant the ones taken in by the big bad banks that deceived them and forced them to buy a McMansion. (Irony here)

A year ago this forum was awash with people asking about walking away, and other endorsing it as a "business decision"....and a few brave souls like me hinting at what the eventual recourse would be. And who has the last laugh? Time to pay the piper.
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Old 02-03-2010, 03:08 PM
 
Location: Oxygen Ln. AZ
9,319 posts, read 18,677,064 times
Reputation: 5764
I would hope they do go after the clods that bought new SUV's, boats and quads with the equity they milked from the homes, but the people who lost their homes due to the sh....y economy should not be held liable.
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Old 02-03-2010, 03:21 PM
 
8,518 posts, read 15,590,593 times
Reputation: 7711
Quote:
Originally Posted by LynnKK View Post
How come we don't have people walking away in droves from their car loans? After all, these cars aren't worth what was paid for them the minute they are driven off the lot. This "isn't worth what I paid for it" thought process is a contrived excuse to walk away from debt and then because you walked away from what you agreed to pay, no on is supposed to come after you? Come on....grow up. Live within your means people.
For a real estate agent in IL, you sound stunningly out-of-touch. Do you think everyone in IL who's walking away from their homes are doing so because they bought a house beyond their means? I know plenty of people who bought homes before the boom. They didn't take "liar loans" or ARMs. They didn't accept loans 5 times their income. These were people who were responsible and "lived with their means". But when they lose their jobs and they're in a state with over 10% unemployment where you can't even get interviews, what are they supposed to do? I'm sick and tired of people like you characterizing every underwater homeowner as being irresponsible. I blame the folks in your line of work for telling people to buy the most house they can buy, for telling them their homes will always appreciate, and for lining up your in-house lenders who encourage people to accept loans they'll never be able to pay off even though the loan officer has a HUGE conflict of interest. If it were up to me, every state would be a no-recourse state. Why? So the banks can absorb the losses from the crisis they created. If they hadn't been bundling people's loans into derivatives and just stuck with doing commercial banking, we wouldn't have this mess. The banks created this crisis. Seems fitting that they pay the biggest price for it. The idea of banks who basically gambled with their customers' money then being able to go after those customers to make up for their (the bank's) mistakes is offensive. If any good has come out of this crisis, it's in showing how incompetent so many real estate agents are. Anyone can sell in a good market. A bad market separates those with talent from the wannabes.
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