Short Sale/Foreclosure question

[temeculaguy]

ethics aside, stargirl had some questions, so here are the basic broad brush answers.

A short sale is when you sell for less than you owe and the bank agrees to take less in order to avoid foreclosure. They do this because it takes a year to foreclose and the occupant strips the place so it is worth more with the occupant’s cooperation. The rub is that all the lenders have to agree and the second mortgages get close to wiped out so they don’t always agree, shorts don’t always work, maybe half the time because anyone can list, but it takes an offer from a buyer before you can ask for permission. It’s like taking your sleeping bag and pillow to your friend’s house and asking your parents if you can spend the night at about midnight. it’s a crap shoot.

Also, yes, people took out more money than their house is currently worth and more than they can afford to pay back, that’s the bank’s fault as much as the borrower, they drank the appreciation kool aid as much as anyone.

Before you figure out a scheme, that ship has sailed, too late, and I’d be willing to wager a bar tab that your friend didn’t pocket the 522k, he/she probably pissed it away. That is what is really hurting the economy right now, nobody is pissing away free money anymore, nor will they be anytime soon.

As far as when foreclosure will happen, you need to do more research, when the NOD (notice of default) was filed can give you an idea. That takes place after about three missed payments. The NOT (notice of trustees sale) is a couple months after that, and that is what is deem a foreclosure, another month and it’s on the streets. Run a search on local newspapers classified legal section, the NOT has to be publicly posted or go to foreclosure.com and sort data by name of defendant. County sites or in person locations during a grantee search can give you both NOD and NOT info, riverside county has it online, I think Sd does as well but not sure.

Have fun peeking under the hood.

[socrattt]

Urban, I guess I am more frustrated by your comments. I don’t agree that foolish and short sighted mistakes are understandable when it comes to purchasing a $600K home that was an unrealistic purchase to the buyer.

Of course I have made mistakes, but should I hold you responsible? No, I should take responsibility for my own actions and if that means my credit is ruined for ten years and I will be held accountable for my debt that incurred for the mistake, then so be it.

I watch on a daily basis our government taking extreme moves to protect the irresponsible. Now I have to tell my little boy as he grows up that he is now going to be responsible for the debt of today’s ignorance. Sorry, but that just doesn’t really sit well with me.

As far as being judgmental, this is more of a matter of right and wrong. You make the right decision you pay the ultimate price, i.e. higher taxes, much lower 401K’s and a drawn out market collapse with no end in sight. You make the wrong decision you get bailed out and forgiven of debt. Along with the wrong decision you don’t have to worry about home buying because you won’t be doing that for years and chances are you never even had a 401K because you weren’t too smart with money management in the first place.

I don’t think there is any grey area here. I have family members who are walking away from their homes and I don’t feel sorry for them. They took equity out of their home as many Americans did and spent it unwisely. For that they deserve to pay for something, but that isn’t the case.

[socrattt]

Urban, I guess I am more frustrated by your comments. I don’t agree that foolish and short sighted mistakes are understandable when it comes to purchasing a $600K home that was an unrealistic purchase to the buyer.

Of course I have made mistakes, but should I hold you responsible? No, I should take responsibility for my own actions and if that means my credit is ruined for ten years and I will be held accountable for my debt that incurred for the mistake, then so be it.

I watch on a daily basis our government taking extreme moves to protect the irresponsible. Now I have to tell my little boy as he grows up that he is now going to be responsible for the debt of today’s ignorance. Sorry, but that just doesn’t really sit well with me.

As far as being judgmental, this is more of a matter of right and wrong. You make the right decision you pay the ultimate price, i.e. higher taxes, much lower 401K’s and a drawn out market collapse with no end in sight. You make the wrong decision you get bailed out and forgiven of debt. Along with the wrong decision you don’t have to worry about home buying because you won’t be doing that for years and chances are you never even had a 401K because you weren’t too smart with money management in the first place.

I don’t think there is any grey area here. I have family members who are walking away from their homes and I don’t feel sorry for them. They took equity out of their home as many Americans did and spent it unwisely. For that they deserve to pay for something, but that isn’t the case.

[socrattt]

Urban, I guess I am more frustrated by your comments. I don’t agree that foolish and short sighted mistakes are understandable when it comes to purchasing a $600K home that was an unrealistic purchase to the buyer.

Of course I have made mistakes, but should I hold you responsible? No, I should take responsibility for my own actions and if that means my credit is ruined for ten years and I will be held accountable for my debt that incurred for the mistake, then so be it.

I watch on a daily basis our government taking extreme moves to protect the irresponsible. Now I have to tell my little boy as he grows up that he is now going to be responsible for the debt of today’s ignorance. Sorry, but that just doesn’t really sit well with me.

As far as being judgmental, this is more of a matter of right and wrong. You make the right decision you pay the ultimate price, i.e. higher taxes, much lower 401K’s and a drawn out market collapse with no end in sight. You make the wrong decision you get bailed out and forgiven of debt. Along with the wrong decision you don’t have to worry about home buying because you won’t be doing that for years and chances are you never even had a 401K because you weren’t too smart with money management in the first place.

I don’t think there is any grey area here. I have family members who are walking away from their homes and I don’t feel sorry for them. They took equity out of their home as many Americans did and spent it unwisely. For that they deserve to pay for something, but that isn’t the case.

[socrattt]

Urban, I guess I am more frustrated by your comments. I don’t agree that foolish and short sighted mistakes are understandable when it comes to purchasing a $600K home that was an unrealistic purchase to the buyer.

Of course I have made mistakes, but should I hold you responsible? No, I should take responsibility for my own actions and if that means my credit is ruined for ten years and I will be held accountable for my debt that incurred for the mistake, then so be it.

I watch on a daily basis our government taking extreme moves to protect the irresponsible. Now I have to tell my little boy as he grows up that he is now going to be responsible for the debt of today’s ignorance. Sorry, but that just doesn’t really sit well with me.

As far as being judgmental, this is more of a matter of right and wrong. You make the right decision you pay the ultimate price, i.e. higher taxes, much lower 401K’s and a drawn out market collapse with no end in sight. You make the wrong decision you get bailed out and forgiven of debt. Along with the wrong decision you don’t have to worry about home buying because you won’t be doing that for years and chances are you never even had a 401K because you weren’t too smart with money management in the first place.

I don’t think there is any grey area here. I have family members who are walking away from their homes and I don’t feel sorry for them. They took equity out of their home as many Americans did and spent it unwisely. For that they deserve to pay for something, but that isn’t the case.

[socrattt]

Urban, I guess I am more frustrated by your comments. I don’t agree that foolish and short sighted mistakes are understandable when it comes to purchasing a $600K home that was an unrealistic purchase to the buyer.

Of course I have made mistakes, but should I hold you responsible? No, I should take responsibility for my own actions and if that means my credit is ruined for ten years and I will be held accountable for my debt that incurred for the mistake, then so be it.

I watch on a daily basis our government taking extreme moves to protect the irresponsible. Now I have to tell my little boy as he grows up that he is now going to be responsible for the debt of today’s ignorance. Sorry, but that just doesn’t really sit well with me.

As far as being judgmental, this is more of a matter of right and wrong. You make the right decision you pay the ultimate price, i.e. higher taxes, much lower 401K’s and a drawn out market collapse with no end in sight. You make the wrong decision you get bailed out and forgiven of debt. Along with the wrong decision you don’t have to worry about home buying because you won’t be doing that for years and chances are you never even had a 401K because you weren’t too smart with money management in the first place.

I don’t think there is any grey area here. I have family members who are walking away from their homes and I don’t feel sorry for them. They took equity out of their home as many Americans did and spent it unwisely. For that they deserve to pay for something, but that isn’t the case.

[urbanrealtor]

I don’t think anyone should take responsibility for anyone else’s poor choices. I just try not to hate too much on people making poor decisions. Also, I don’t think that bad decisions are always an example of moral failing. Often it is an error (though an expensive one).

But sure, go ahead and soapbox about how mistakes are actually always intentional evil.

[urbanrealtor]

I don’t think anyone should take responsibility for anyone else’s poor choices. I just try not to hate too much on people making poor decisions. Also, I don’t think that bad decisions are always an example of moral failing. Often it is an error (though an expensive one).

But sure, go ahead and soapbox about how mistakes are actually always intentional evil.

[urbanrealtor]

I don’t think anyone should take responsibility for anyone else’s poor choices. I just try not to hate too much on people making poor decisions. Also, I don’t think that bad decisions are always an example of moral failing. Often it is an error (though an expensive one).

But sure, go ahead and soapbox about how mistakes are actually always intentional evil.

[urbanrealtor]

I don’t think anyone should take responsibility for anyone else’s poor choices. I just try not to hate too much on people making poor decisions. Also, I don’t think that bad decisions are always an example of moral failing. Often it is an error (though an expensive one).

But sure, go ahead and soapbox about how mistakes are actually always intentional evil.

[urbanrealtor]

I don’t think anyone should take responsibility for anyone else’s poor choices. I just try not to hate too much on people making poor decisions. Also, I don’t think that bad decisions are always an example of moral failing. Often it is an error (though an expensive one).

But sure, go ahead and soapbox about how mistakes are actually always intentional evil.

[SD Realtor]

UR not so sure I agree. I am a strong believer in personal responsibity. With regards to your point of view I have sellers who are selling short and are perfect examples of raw bad luck. They bought and many years ago then refinanced to remodel. Then last year both the husband and wife suffered medical injuries. His injuries forced him out of work while she is back at work after a few months of disability. To me this is simply a series of bad luck and not bad decisions.

Now the home on Chardonay up the street from me is not. They have the massive RV and the huge boat along with plenty of toys. This is nothing but sheer overconsumption. Is this a case of moral failing? Well I am not sure that is the correct word for it but it is not any different then running a credit card to the limit and not having the money to afford what you buy. If we cannot trust people with credit then what does that say about our society? One I believe could argue a case for moral failing.

I don’t classify them as evil… just stupidity. Maybe we do need to be a nanny state.

[SD Realtor]

UR not so sure I agree. I am a strong believer in personal responsibity. With regards to your point of view I have sellers who are selling short and are perfect examples of raw bad luck. They bought and many years ago then refinanced to remodel. Then last year both the husband and wife suffered medical injuries. His injuries forced him out of work while she is back at work after a few months of disability. To me this is simply a series of bad luck and not bad decisions.

Now the home on Chardonay up the street from me is not. They have the massive RV and the huge boat along with plenty of toys. This is nothing but sheer overconsumption. Is this a case of moral failing? Well I am not sure that is the correct word for it but it is not any different then running a credit card to the limit and not having the money to afford what you buy. If we cannot trust people with credit then what does that say about our society? One I believe could argue a case for moral failing.

I don’t classify them as evil… just stupidity. Maybe we do need to be a nanny state.

[SD Realtor]

UR not so sure I agree. I am a strong believer in personal responsibity. With regards to your point of view I have sellers who are selling short and are perfect examples of raw bad luck. They bought and many years ago then refinanced to remodel. Then last year both the husband and wife suffered medical injuries. His injuries forced him out of work while she is back at work after a few months of disability. To me this is simply a series of bad luck and not bad decisions.

Now the home on Chardonay up the street from me is not. They have the massive RV and the huge boat along with plenty of toys. This is nothing but sheer overconsumption. Is this a case of moral failing? Well I am not sure that is the correct word for it but it is not any different then running a credit card to the limit and not having the money to afford what you buy. If we cannot trust people with credit then what does that say about our society? One I believe could argue a case for moral failing.

I don’t classify them as evil… just stupidity. Maybe we do need to be a nanny state.

[SD Realtor]

UR not so sure I agree. I am a strong believer in personal responsibity. With regards to your point of view I have sellers who are selling short and are perfect examples of raw bad luck. They bought and many years ago then refinanced to remodel. Then last year both the husband and wife suffered medical injuries. His injuries forced him out of work while she is back at work after a few months of disability. To me this is simply a series of bad luck and not bad decisions.

Now the home on Chardonay up the street from me is not. They have the massive RV and the huge boat along with plenty of toys. This is nothing but sheer overconsumption. Is this a case of moral failing? Well I am not sure that is the correct word for it but it is not any different then running a credit card to the limit and not having the money to afford what you buy. If we cannot trust people with credit then what does that say about our society? One I believe could argue a case for moral failing.

I don’t classify them as evil… just stupidity. Maybe we do need to be a nanny state.

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