In answer to your question, are they going to be “recourse loans”?
The ones that I am undertaking right now are not recourse. It’s all how you negotiate with the specific lender. It’s all about positioning the file in a favorable way for the borrower and how you do the “principal reduction”.
Having a first and second makes the task easier…..
Concerning the sale of the home for a quick profit, in some instances there will be a profit share on the way up, and in others there are no restrictions.
This is uncharted territory for alot of lenders but they are seeing it makes the most sense for everyone.
All the piggs here that want the housing market to drop should applaud a plan like this here as it will surely put major downward pressure on home values. Good for us waiting for the end to fanstasy home prices….
