[quote=SK in CV][quote=bearishgurl]
This is the just the type of “entitlement mentality” that gets the many thousands of successful longtime homeowners’ blood boiling.[/quote]
Just for a different perspective, I’m also a long time homeowner and I don’t have much of a problem with short sales or strategic defaults. On a blood-boiling scale, it’s nothing compared to:
lenders and their agents who abandoned underwriting standards, approved loans for borrowers ill qualified to repay, enabled and sometimes participated approving fraudulent applications.
builders, and their agents who participated in the loan failures by buying down interest rates, and similarly participated in preparing fraudulent applications.
wall street banks who bought and packaged these loans into mortgage backed securities, selling them to investors (including public employee pension plans, thereby costing taxpayers) as safe investments.
bond rating services, who gave these MBS high ratings by abandoning their own standard of care, in exchange for fees paid by wall street banks who sponsored the securities.[/quote]
SK, I understand all of this and agree with you on these points but new to SD was apparently “well-qualified” to purchase his (new construction?) home in SEH (SM). At the time of purchase, he likely wasn’t “taken advantage of” by an unscrupulous mortgage broker-poser peddling subprime products (and believe me, I know a few people that WERE … some with language barriers). In new to SD’s own words, it was his “business decision” to “strategically default” in attempt to force his lender’s hand into foreclosure or SS and it WORKED! He did this because he stated he couldn’t refinance his 6% mtg due to being underwater. In my mind (I’m old … like you … lol … or even OLDer), he could have hung on and recovered his “lost equity” in SEH by 2014 or 2015 and possibly retained his previous credit score but he decided instead to “strategically default” even though (apparently) well-employed before, during and after the default. As you know, historically, 6% is not a particularly high mortgage interest rate. It is clear that he doesn’t understand how long it takes a credit score to “recover” from this little maneuver because he posted here in August 2013, ~10+ months after presumably closing his SS that he didn’t realize that his credit score would still be affected (in so many words).
[quote=new to SD on August 7, 2013 – 5:51pm.]Will this lender lend to a FICO score below 600? I had a short sale and it is taking longer than planned to get my score up[/quote]
[quote=new to SD on August 8, 2013 – 5:51pm.]Thanks for the reply. I can put 20% – 25% down. I need to borrow $500k to $700k and my Short sale was finalized in September last year.[/quote]
It seems he likely thought he could pull this coup and then just whisk the flies away from his starched cuffs and turn around ONE MONTH LATER and successfully buy another home in SD County’s finest communities!
[quote=new to SD on October 31, 2012 – 11:16am.]We also have been waiting to buy and are new to SD. We are looking but there is not much available.
Are there any areas in Encinitas, Rancho sante fe or Carmel Valley that have 1 acre that you would recommend?[/quote]
Not only that, he now wants a 1 AC lot! ROTFALMYO!
Given his high 500’s FICO score, it is instructive to all that he won’t be able to achieve his “dreams” anytime soon unless he accepts some very unpalatable mortgage terms.
new to SD, did your RE agent ever explain to you during your short-sale process how long it will take for your credit score to recover from this debacle?
