[quote=sdrealtor]Hey dumbass. I found one to shut you up once and for all. Send me your email via private messages and I will send you a copy of letter from a lender where the seller negotiated a short payoff of a refinanced recourse $90,000 2nd for about $7400 cash in March. I will also include the tax records showing the amount of the loans. We had to get that settled before selling the house. Once we got that settled we closed the short sale the next month with the 1st lender which was non-recourse. They could have stayed if they wanted with only a 1st mortgage and gotten it modified but were getting divorced so neither wanted to stay.[/quote]
You said these fantasies were PREVENTING foreclosures and you give an example of a short-sale. A short sale is NOT “people negotiate with the primary mortgage lender to lower their mortgage payments”.
They lost the home; they did not get a pass on a second while keeping the home off the distressed sale market like you suggest. One of my points was that if the second takes a loss then they will make sure the debtor does too (no free lunch). In this case THEY LOST THE HOME.
Nice try and it seems to have fooled some but it’s a completely different argument. I never said seconds were not taking losses in short sales/foreclosures. I’m sure they are taking losses in most or all of THOSE cases.
The example you provide is just an example of MORE short sale/foreclosure inventory not a reduction to it.
Let’s have just one example of “Many people intentionally defaulted on the 2nd mortgages only, knowing that the junior lien holders don’t have the legal right to kick them out. At the same time, these same people negotiate with the primary mortgage lender to lower their mortgage payments.”
—— SDRealtor Said:
“They could have stayed if they wanted with only a 1st mortgage”
BS! So now you can arrange a distressed short sale with a bank then decide to keep the new lower mortgage amount and home for yourself? Wow, there won’t be one mortgage in CA that does not go through that process once word of this gets out.
