[quote=paramount]FB’s for the most part should take the advice of Brent White (University of Arizona Prof) and walk away. No short sales (to much liability after the sale) – just foreclosure.
Freddie Mac spokesholes state there is a moral dimension to foreclosure – I say BS, it’s only a legal issue and that’s it.[/quote]
I agree about the legal and money issue being the only real dimensions on this (though many people get emotional). However the argument that the REO has less liability is not accurate most of the time here (in CA).
Most short sale lenders will explicitly forgo the deficiency and forgive the rest. It is to there advantage to do so because it gives an incentive to sell short which is less expensive than REO. The ones that won’t usually can be scared off.
Between the law and short pay agreements, very little liability exists for the FB’s who sell.
