[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.
Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]
Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).
If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.
I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.
