Thanks for the clarification sdr, but it was not a “faulty” post.
You are correct IF the lender seeks non-judicial foreclosure. This doesn’t mean the lender cannot seek a judicial foreclosure. Here is the scenario… a high net-worth individual makes a bad purchase on his home, and decides to save some money via a refi. The value of the house subsequently tanks and he decides to make a “strategic default” thinking there is nothing the bank can do about it because he has received advice on the internet that the bank cannot go after their assets.
The reason that 99.9 percent of foreclosures are non-judicial is because the deficiency is less than the expected litigation and other costs. I don’t know where that number is because I don’t litigate in this space. However, there is a number where judicial foreclosure is worthwhile, and personal assets are in jeopardy.
People should make their own choice based on their own situation, but it is better to have complete information about your rights before you do.
