Lender telling borrower to walk away from house? WTF?

[nostradamus]

A friend who owns in 4S just told me that they called their lender (Countrywide) to discuss refinancing. They told her the house is now worth $100k less thus they have no equity and their best option is to walk away.

WTF???? Has anyone heard of this? A lender telling their borrower to walk away? Why would they do this? While it may actually be their best option, it seems very strange for the lender to tell her this unless they expect some kind of major bailout.

[flyer]

We have friends who are planning to buy there at some point in time, and they have heard that those who purchased their homes in 2004-2006 probably paid in the $800’s+ for homes that are now selling in the $600’s–a loss of around $200K.

In one development, they know of people who paid $850K for a 3000SF home in 2005, and someone who recently closed on the same size home across the street for $675K!

When did your friends buy in 4S? Did they go in with a zero down? If so, the lender may be correct, but it’s still amazing to me that they would suggest walking.

[flyer]

We have friends who are planning to buy there at some point in time, and they have heard that those who purchased their homes in 2004-2006 probably paid in the $800’s+ for homes that are now selling in the $600’s–a loss of around $200K.

In one development, they know of people who paid $850K for a 3000SF home in 2005, and someone who recently closed on the same size home across the street for $675K!

When did your friends buy in 4S? Did they go in with a zero down? If so, the lender may be correct, but it’s still amazing to me that they would suggest walking.

[flyer]

We have friends who are planning to buy there at some point in time, and they have heard that those who purchased their homes in 2004-2006 probably paid in the $800’s+ for homes that are now selling in the $600’s–a loss of around $200K.

In one development, they know of people who paid $850K for a 3000SF home in 2005, and someone who recently closed on the same size home across the street for $675K!

When did your friends buy in 4S? Did they go in with a zero down? If so, the lender may be correct, but it’s still amazing to me that they would suggest walking.

[flyer]

We have friends who are planning to buy there at some point in time, and they have heard that those who purchased their homes in 2004-2006 probably paid in the $800’s+ for homes that are now selling in the $600’s–a loss of around $200K.

In one development, they know of people who paid $850K for a 3000SF home in 2005, and someone who recently closed on the same size home across the street for $675K!

When did your friends buy in 4S? Did they go in with a zero down? If so, the lender may be correct, but it’s still amazing to me that they would suggest walking.

[flyer]

We have friends who are planning to buy there at some point in time, and they have heard that those who purchased their homes in 2004-2006 probably paid in the $800’s+ for homes that are now selling in the $600’s–a loss of around $200K.

In one development, they know of people who paid $850K for a 3000SF home in 2005, and someone who recently closed on the same size home across the street for $675K!

When did your friends buy in 4S? Did they go in with a zero down? If so, the lender may be correct, but it’s still amazing to me that they would suggest walking.

[nostradamus]

She bought near the peak. Paid $729k for a 5br/4.5ba 3200 sf. Countrywide told her the house is now worth $620k.

[nostradamus]

She bought near the peak. Paid $729k for a 5br/4.5ba 3200 sf. Countrywide told her the house is now worth $620k.

[nostradamus]

She bought near the peak. Paid $729k for a 5br/4.5ba 3200 sf. Countrywide told her the house is now worth $620k.

[nostradamus]

She bought near the peak. Paid $729k for a 5br/4.5ba 3200 sf. Countrywide told her the house is now worth $620k.

[nostradamus]

She bought near the peak. Paid $729k for a 5br/4.5ba 3200 sf. Countrywide told her the house is now worth $620k.

[Diego Mamani]

How much was her down payment?

I’m speculating, but Countrywide may be the loan servicer in this case, not the lender. They are unable, or unmotivated, to modify the terms of the loan. It’s someone else’s loss, after all.

[Diego Mamani]

How much was her down payment?

I’m speculating, but Countrywide may be the loan servicer in this case, not the lender. They are unable, or unmotivated, to modify the terms of the loan. It’s someone else’s loss, after all.

[Diego Mamani]

How much was her down payment?

I’m speculating, but Countrywide may be the loan servicer in this case, not the lender. They are unable, or unmotivated, to modify the terms of the loan. It’s someone else’s loss, after all.

[Diego Mamani]

How much was her down payment?

I’m speculating, but Countrywide may be the loan servicer in this case, not the lender. They are unable, or unmotivated, to modify the terms of the loan. It’s someone else’s loss, after all.

[Author]

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