Strategic defaults on homes on the rise

[Nor-LA-SD-guy]

CALIFORNIA: California’s anti-deficiency law applies only to funds used to purchase a residence. The anti-deficiency law does not apply to additional financing such as second mortgages or home-equity loans. California requires foreclosure on real property trust deeds and mortgages instead of a suit on the note. No deficiency judgment is possible where the seller takes back a purchase money note and deed of trust as part of the sale financing. If a third-party lender finances the purchase, the third party cannot recover a deficiency judgment if that loan is given and used for paying all or part of the purchase price, is secured by the property purchased, is a property for use by no more than four people, and is owner occupied. A deficiency judgment is not available if the lender forecloses by private sale by TRUSTEE instead of a judicial foreclosure law suit. Federally made or guaranteed loans are generally not subject to the anti-deficiency laws of the state. V. A., FHA and Small Business Administration loans may subject the borrower to a deficiency judgment. A third-party refinance of a purchase money loan is not a purchase money loan and the buyer could be personally liable for payment of the seller’s note after a judicial foreclosure.

[ybitz]

Another repercussion to strategic foreclosure that a lot of people don’t realize is its effect on security clearances. Financial record and credit score are major factors in one’s ability to obtain and maintain security clearance. Just something to think about if you’re in the military or work for one of the many defense contractors in San Diego.

[ybitz]

Another repercussion to strategic foreclosure that a lot of people don’t realize is its effect on security clearances. Financial record and credit score are major factors in one’s ability to obtain and maintain security clearance. Just something to think about if you’re in the military or work for one of the many defense contractors in San Diego.

[ybitz]

Another repercussion to strategic foreclosure that a lot of people don’t realize is its effect on security clearances. Financial record and credit score are major factors in one’s ability to obtain and maintain security clearance. Just something to think about if you’re in the military or work for one of the many defense contractors in San Diego.

[ybitz]

Another repercussion to strategic foreclosure that a lot of people don’t realize is its effect on security clearances. Financial record and credit score are major factors in one’s ability to obtain and maintain security clearance. Just something to think about if you’re in the military or work for one of the many defense contractors in San Diego.

[ybitz]

Another repercussion to strategic foreclosure that a lot of people don’t realize is its effect on security clearances. Financial record and credit score are major factors in one’s ability to obtain and maintain security clearance. Just something to think about if you’re in the military or work for one of the many defense contractors in San Diego.

[scaredyclassic]

i told my wife several years before this concept was a news story as prices started to come down that i thought strategic defaults would occur. I didn’t call them stratgeic defaults, i just said, “babe, I bet ya my vo-workers whos till have jobs are going to bail on some of these giant mortgages even though they can pay.”

She said i was being an idiot and that normal people would never do that, they just stay in their house and

ride it out, and I don’t understand how normal people think, etc etc…. She was basing her opinion off of her experience with family and friends and doesn’t spend really any time thinking about these issues or the magnitude of the situation

(not that that is bad, or that i am smart, or anything like that — just a fact. She’s not interested, and defers to my paranoia/pseudo-expertise).

What is interesting is not that she was wrong, because I think her opinion would be clearly a majority opinion at that time, but how certain she was that my thoughts were laughable and outlandish a couple years ago, and how quickly it’s become a real social issue.

If prices are flat for a few years and things don’t materially improve, and there is no light at the end of the tunnel for decent appreciation, this type of thinking could become embedded in homeowner’s minds, and there is a steady flow of foreclosures into the future.

Very bad.

[scaredyclassic]

i told my wife several years before this concept was a news story as prices started to come down that i thought strategic defaults would occur. I didn’t call them stratgeic defaults, i just said, “babe, I bet ya my vo-workers whos till have jobs are going to bail on some of these giant mortgages even though they can pay.”

She said i was being an idiot and that normal people would never do that, they just stay in their house and

ride it out, and I don’t understand how normal people think, etc etc…. She was basing her opinion off of her experience with family and friends and doesn’t spend really any time thinking about these issues or the magnitude of the situation

(not that that is bad, or that i am smart, or anything like that — just a fact. She’s not interested, and defers to my paranoia/pseudo-expertise).

What is interesting is not that she was wrong, because I think her opinion would be clearly a majority opinion at that time, but how certain she was that my thoughts were laughable and outlandish a couple years ago, and how quickly it’s become a real social issue.

If prices are flat for a few years and things don’t materially improve, and there is no light at the end of the tunnel for decent appreciation, this type of thinking could become embedded in homeowner’s minds, and there is a steady flow of foreclosures into the future.

Very bad.

[scaredyclassic]

i told my wife several years before this concept was a news story as prices started to come down that i thought strategic defaults would occur. I didn’t call them stratgeic defaults, i just said, “babe, I bet ya my vo-workers whos till have jobs are going to bail on some of these giant mortgages even though they can pay.”

She said i was being an idiot and that normal people would never do that, they just stay in their house and

ride it out, and I don’t understand how normal people think, etc etc…. She was basing her opinion off of her experience with family and friends and doesn’t spend really any time thinking about these issues or the magnitude of the situation

(not that that is bad, or that i am smart, or anything like that — just a fact. She’s not interested, and defers to my paranoia/pseudo-expertise).

What is interesting is not that she was wrong, because I think her opinion would be clearly a majority opinion at that time, but how certain she was that my thoughts were laughable and outlandish a couple years ago, and how quickly it’s become a real social issue.

If prices are flat for a few years and things don’t materially improve, and there is no light at the end of the tunnel for decent appreciation, this type of thinking could become embedded in homeowner’s minds, and there is a steady flow of foreclosures into the future.

Very bad.

[scaredyclassic]

i told my wife several years before this concept was a news story as prices started to come down that i thought strategic defaults would occur. I didn’t call them stratgeic defaults, i just said, “babe, I bet ya my vo-workers whos till have jobs are going to bail on some of these giant mortgages even though they can pay.”

She said i was being an idiot and that normal people would never do that, they just stay in their house and

ride it out, and I don’t understand how normal people think, etc etc…. She was basing her opinion off of her experience with family and friends and doesn’t spend really any time thinking about these issues or the magnitude of the situation

(not that that is bad, or that i am smart, or anything like that — just a fact. She’s not interested, and defers to my paranoia/pseudo-expertise).

What is interesting is not that she was wrong, because I think her opinion would be clearly a majority opinion at that time, but how certain she was that my thoughts were laughable and outlandish a couple years ago, and how quickly it’s become a real social issue.

If prices are flat for a few years and things don’t materially improve, and there is no light at the end of the tunnel for decent appreciation, this type of thinking could become embedded in homeowner’s minds, and there is a steady flow of foreclosures into the future.

Very bad.

[scaredyclassic]

i told my wife several years before this concept was a news story as prices started to come down that i thought strategic defaults would occur. I didn’t call them stratgeic defaults, i just said, “babe, I bet ya my vo-workers whos till have jobs are going to bail on some of these giant mortgages even though they can pay.”

She said i was being an idiot and that normal people would never do that, they just stay in their house and

ride it out, and I don’t understand how normal people think, etc etc…. She was basing her opinion off of her experience with family and friends and doesn’t spend really any time thinking about these issues or the magnitude of the situation

(not that that is bad, or that i am smart, or anything like that — just a fact. She’s not interested, and defers to my paranoia/pseudo-expertise).

What is interesting is not that she was wrong, because I think her opinion would be clearly a majority opinion at that time, but how certain she was that my thoughts were laughable and outlandish a couple years ago, and how quickly it’s become a real social issue.

If prices are flat for a few years and things don’t materially improve, and there is no light at the end of the tunnel for decent appreciation, this type of thinking could become embedded in homeowner’s minds, and there is a steady flow of foreclosures into the future.

Very bad.

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