patb, I’d be very interested to see the total nationwide amount, in excess of home proceeds, collected on these recourse mortages, measured as a % of the total foreclosed-on / shorted loan amount.
As many people have already pointed out, it is extraordinary for a lender to pursue a recourse mortgage loan beyond the home proceeds. It is so rare that I suspect no one considers the stats worth collecting, the collected amounts are so close to zero. Instead we have just a few anecdotes to
generate some impressions amongst the public.
I think you’d have to walk up to the loan servicer’s office and tell them they are a bunch of morons, and then spit on them, before they’d even consider pursuing collection against you. If they come after you anyway, then have an attorney send ’em a letter. If that doesn’t work (and it almost always will), then threaten to talk to the newspaper. If that doesn’t work (and it almost always would for any TARP-indebted bank/servicer), then call your local state or Congressional rep and give a sob story. I guarantee you, the number of people who have to pay is tiny. Almost anyone who doesn’t want to pay can avoid paying.
I can’t resist mentioning that Barney Frank is my Congressman. Can you imagine Citibank taking the call from his office if they pursued a recourse loan they’d given me, after I’d provided a sob story to Barney’s office? I guarantee that loan would be “taken care of” within 24 hours.
