New: When does it make financial sense to dump my house?

[SD Realtor]

sdr you have seen many more approval letters then I have so I would defer to your statements on the vagaries of some of them. Fortunately in the ones I have had there were no such vagaries, they were clear in the direction the lender wanted to go. It doesn’t surprise me though that you have seen many of them try to keep the deficiency in place through sneaky measures.

The one thing that is never mentioned about the walkaway question is the future impact of that event. I think it is pretty easy for people to determine the walk away question for the present as you spoke of above. Of course we all know of posters here who have done so or are in the middle of doing so, or who are thinking about it. The real question is if you are someone thinking of extending credit and your applicant has walked away before, why would you lend to them again? Walking away due to hardship is one thing, however walking away due to depreciation without any hardship… I guess all lenders in the future will be dealing with that question. As you said, certainly private lenders or those supplying credit that are not choked or forced to by the govt will certainly have considerations to mull over.

[sdrealtor]

The interesting thing is that many letters that look clear to the untrained eye are filled with vagaries you or I could never understand. Only an attoreny that understands laws and has experience interpreting these things can offer an opinion on them that has an real substance. I work with an attorney that has taught me a tremendous amount.

The truth is there is no clear case law on deficiency judgements after short sales with non-recourse loans as nothing like this has ever happened before. Ultimately there will be one hell of a battle between attorney’s and lenders over it that will have to be litigated. Hopefully, I’ll be in rocking chair by then.

A big ole’ hat tip to poster Kingside who posted some great case law on another blog that we have been using and which could be a game changer.

[sdrealtor]

The interesting thing is that many letters that look clear to the untrained eye are filled with vagaries you or I could never understand. Only an attoreny that understands laws and has experience interpreting these things can offer an opinion on them that has an real substance. I work with an attorney that has taught me a tremendous amount.

The truth is there is no clear case law on deficiency judgements after short sales with non-recourse loans as nothing like this has ever happened before. Ultimately there will be one hell of a battle between attorney’s and lenders over it that will have to be litigated. Hopefully, I’ll be in rocking chair by then.

A big ole’ hat tip to poster Kingside who posted some great case law on another blog that we have been using and which could be a game changer.

[sdrealtor]

The interesting thing is that many letters that look clear to the untrained eye are filled with vagaries you or I could never understand. Only an attoreny that understands laws and has experience interpreting these things can offer an opinion on them that has an real substance. I work with an attorney that has taught me a tremendous amount.

The truth is there is no clear case law on deficiency judgements after short sales with non-recourse loans as nothing like this has ever happened before. Ultimately there will be one hell of a battle between attorney’s and lenders over it that will have to be litigated. Hopefully, I’ll be in rocking chair by then.

A big ole’ hat tip to poster Kingside who posted some great case law on another blog that we have been using and which could be a game changer.

[sdrealtor]

The interesting thing is that many letters that look clear to the untrained eye are filled with vagaries you or I could never understand. Only an attoreny that understands laws and has experience interpreting these things can offer an opinion on them that has an real substance. I work with an attorney that has taught me a tremendous amount.

The truth is there is no clear case law on deficiency judgements after short sales with non-recourse loans as nothing like this has ever happened before. Ultimately there will be one hell of a battle between attorney’s and lenders over it that will have to be litigated. Hopefully, I’ll be in rocking chair by then.

A big ole’ hat tip to poster Kingside who posted some great case law on another blog that we have been using and which could be a game changer.

[sdrealtor]

The interesting thing is that many letters that look clear to the untrained eye are filled with vagaries you or I could never understand. Only an attoreny that understands laws and has experience interpreting these things can offer an opinion on them that has an real substance. I work with an attorney that has taught me a tremendous amount.

The truth is there is no clear case law on deficiency judgements after short sales with non-recourse loans as nothing like this has ever happened before. Ultimately there will be one hell of a battle between attorney’s and lenders over it that will have to be litigated. Hopefully, I’ll be in rocking chair by then.

A big ole’ hat tip to poster Kingside who posted some great case law on another blog that we have been using and which could be a game changer.

[patb]

What you are asking is the Inverse of the Rent or Own
question.

In this case Sell or Stay.

The Harvard MBA says “Run a discounted cash flow,
estimate your sales price today, in 12 months, in 36
and 60 months.” compare the cash flows.
Go with what’s best.

If you think the cash flows are going to continue
to suffer, get out. Why not, the banks did it to you,
all you are doing is socializing your loss.

in 2-5 years your credit will be fine. Just make sure
you have a lease lined up before you bail.

[patb]

What you are asking is the Inverse of the Rent or Own
question.

In this case Sell or Stay.

The Harvard MBA says “Run a discounted cash flow,
estimate your sales price today, in 12 months, in 36
and 60 months.” compare the cash flows.
Go with what’s best.

If you think the cash flows are going to continue
to suffer, get out. Why not, the banks did it to you,
all you are doing is socializing your loss.

in 2-5 years your credit will be fine. Just make sure
you have a lease lined up before you bail.

[patb]

What you are asking is the Inverse of the Rent or Own
question.

In this case Sell or Stay.

The Harvard MBA says “Run a discounted cash flow,
estimate your sales price today, in 12 months, in 36
and 60 months.” compare the cash flows.
Go with what’s best.

If you think the cash flows are going to continue
to suffer, get out. Why not, the banks did it to you,
all you are doing is socializing your loss.

in 2-5 years your credit will be fine. Just make sure
you have a lease lined up before you bail.

[patb]

What you are asking is the Inverse of the Rent or Own
question.

In this case Sell or Stay.

The Harvard MBA says “Run a discounted cash flow,
estimate your sales price today, in 12 months, in 36
and 60 months.” compare the cash flows.
Go with what’s best.

If you think the cash flows are going to continue
to suffer, get out. Why not, the banks did it to you,
all you are doing is socializing your loss.

in 2-5 years your credit will be fine. Just make sure
you have a lease lined up before you bail.

[patb]

What you are asking is the Inverse of the Rent or Own
question.

In this case Sell or Stay.

The Harvard MBA says “Run a discounted cash flow,
estimate your sales price today, in 12 months, in 36
and 60 months.” compare the cash flows.
Go with what’s best.

If you think the cash flows are going to continue
to suffer, get out. Why not, the banks did it to you,
all you are doing is socializing your loss.

in 2-5 years your credit will be fine. Just make sure
you have a lease lined up before you bail.

[Author]

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