- This topic has 75 replies, 7 voices, and was last updated 15 years, 9 months ago by
urbanrealtor.
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November 17, 2008 at 7:08 PM #306140November 17, 2008 at 10:47 PM #306334
jonnycsd
ParticipantRegardless of how you “feel” about the situation, the equity loans will be full recourse against the borrower. Many lenders will “get what they can” in a short sale, then pursue the seller for the deficency balance. Tactics include wage garnishments and leins against any assets they can find.
The “non-recourse” loans mentioned in an earlier post only apply when the loan proceeds are used to purchase or improve (renovation or additions) the property.
This borrower is not out of the woods yet.
November 17, 2008 at 10:47 PM #306701jonnycsd
ParticipantRegardless of how you “feel” about the situation, the equity loans will be full recourse against the borrower. Many lenders will “get what they can” in a short sale, then pursue the seller for the deficency balance. Tactics include wage garnishments and leins against any assets they can find.
The “non-recourse” loans mentioned in an earlier post only apply when the loan proceeds are used to purchase or improve (renovation or additions) the property.
This borrower is not out of the woods yet.
November 17, 2008 at 10:47 PM #306715jonnycsd
ParticipantRegardless of how you “feel” about the situation, the equity loans will be full recourse against the borrower. Many lenders will “get what they can” in a short sale, then pursue the seller for the deficency balance. Tactics include wage garnishments and leins against any assets they can find.
The “non-recourse” loans mentioned in an earlier post only apply when the loan proceeds are used to purchase or improve (renovation or additions) the property.
This borrower is not out of the woods yet.
November 17, 2008 at 10:47 PM #306733jonnycsd
ParticipantRegardless of how you “feel” about the situation, the equity loans will be full recourse against the borrower. Many lenders will “get what they can” in a short sale, then pursue the seller for the deficency balance. Tactics include wage garnishments and leins against any assets they can find.
The “non-recourse” loans mentioned in an earlier post only apply when the loan proceeds are used to purchase or improve (renovation or additions) the property.
This borrower is not out of the woods yet.
November 17, 2008 at 10:47 PM #306793jonnycsd
ParticipantRegardless of how you “feel” about the situation, the equity loans will be full recourse against the borrower. Many lenders will “get what they can” in a short sale, then pursue the seller for the deficency balance. Tactics include wage garnishments and leins against any assets they can find.
The “non-recourse” loans mentioned in an earlier post only apply when the loan proceeds are used to purchase or improve (renovation or additions) the property.
This borrower is not out of the woods yet.
November 18, 2008 at 7:36 AM #306408SD Realtor
ParticipantActually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller.
November 18, 2008 at 7:36 AM #306870SD Realtor
ParticipantActually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller.
November 18, 2008 at 7:36 AM #306808SD Realtor
ParticipantActually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller.
November 18, 2008 at 7:36 AM #306790SD Realtor
ParticipantActually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller.
November 18, 2008 at 7:36 AM #306776SD Realtor
ParticipantActually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller.
November 19, 2008 at 12:00 AM #306958urbanrealtor
Participant[quote=SD Realtor]Actually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller. [/quote]
On this specific topic, I just had a conversation with a short sale negotiator who kept insisting that the loan is full recourse. As long as the seller does not sign paper converting the deficiency balance can be turned into an unsecured note, the seller should be able to claim that the short sale is the conclusion of the debt and that the remaining debt is discharged. This advice is from counsel.
November 19, 2008 at 12:00 AM #307332urbanrealtor
Participant[quote=SD Realtor]Actually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller. [/quote]
On this specific topic, I just had a conversation with a short sale negotiator who kept insisting that the loan is full recourse. As long as the seller does not sign paper converting the deficiency balance can be turned into an unsecured note, the seller should be able to claim that the short sale is the conclusion of the debt and that the remaining debt is discharged. This advice is from counsel.
November 19, 2008 at 12:00 AM #307344urbanrealtor
Participant[quote=SD Realtor]Actually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller. [/quote]
On this specific topic, I just had a conversation with a short sale negotiator who kept insisting that the loan is full recourse. As long as the seller does not sign paper converting the deficiency balance can be turned into an unsecured note, the seller should be able to claim that the short sale is the conclusion of the debt and that the remaining debt is discharged. This advice is from counsel.
November 19, 2008 at 12:00 AM #307363urbanrealtor
Participant[quote=SD Realtor]Actually we are starting to see cases of what were originally classified as recourse loans indeed not going against the borrower. Some courts have found negligience (perhaps rightfully so) with the lending institutions. Furthermore don’t think for a moment that policy cannot change. If you think that these policies are indeed static you are sadly mistaken. Finally most all short sales now involve more then one mortgage. In these cases the second lien holder is usually out of luck and they know it and they release the lien without a formal note from the seller. [/quote]
On this specific topic, I just had a conversation with a short sale negotiator who kept insisting that the loan is full recourse. As long as the seller does not sign paper converting the deficiency balance can be turned into an unsecured note, the seller should be able to claim that the short sale is the conclusion of the debt and that the remaining debt is discharged. This advice is from counsel.
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