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scaredyclassic.
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May 13, 2010 at 2:18 PM #550963May 13, 2010 at 2:41 PM #550009
bearishgurl
Participant[quote=UCGal]To make matters worse – original purchase money loans (first and seconds trust deeds gotten at time of purchase) are NON RECOURSE in CA. Only refi’s and HELOCS that occur after the purchase are recourse.[/quote]
For the life of me (I wasn’t working in RE when this practice became common), I HAVE NO IDEA WHY ANY LENDER (either the one holding the 1st TD or a diff. one) would subordinate themselves to themselves or to the 1st TD holder at the time of purchase and make a 2nd “purchase money” loan (for a dn. pymt. perhaps?) and obtain a 2nd TD (purchase $$ NON RECOURSE paper) from the “buyer” in their “favor.” How risky is that??? It’s effectively 100%(+) financing and makes absolutely no sense at all to me.
These lenders must have been two jokers short of a full deck.
May 13, 2010 at 2:41 PM #550119Participant[quote=UCGal]To make matters worse – original purchase money loans (first and seconds trust deeds gotten at time of purchase) are NON RECOURSE in CA. Only refi’s and HELOCS that occur after the purchase are recourse.[/quote]
For the life of me (I wasn’t working in RE when this practice became common), I HAVE NO IDEA WHY ANY LENDER (either the one holding the 1st TD or a diff. one) would subordinate themselves to themselves or to the 1st TD holder at the time of purchase and make a 2nd “purchase money” loan (for a dn. pymt. perhaps?) and obtain a 2nd TD (purchase $$ NON RECOURSE paper) from the “buyer” in their “favor.” How risky is that??? It’s effectively 100%(+) financing and makes absolutely no sense at all to me.
These lenders must have been two jokers short of a full deck.
May 13, 2010 at 2:41 PM #550611Participant[quote=UCGal]To make matters worse – original purchase money loans (first and seconds trust deeds gotten at time of purchase) are NON RECOURSE in CA. Only refi’s and HELOCS that occur after the purchase are recourse.[/quote]
For the life of me (I wasn’t working in RE when this practice became common), I HAVE NO IDEA WHY ANY LENDER (either the one holding the 1st TD or a diff. one) would subordinate themselves to themselves or to the 1st TD holder at the time of purchase and make a 2nd “purchase money” loan (for a dn. pymt. perhaps?) and obtain a 2nd TD (purchase $$ NON RECOURSE paper) from the “buyer” in their “favor.” How risky is that??? It’s effectively 100%(+) financing and makes absolutely no sense at all to me.
These lenders must have been two jokers short of a full deck.
May 13, 2010 at 2:41 PM #550710Participant[quote=UCGal]To make matters worse – original purchase money loans (first and seconds trust deeds gotten at time of purchase) are NON RECOURSE in CA. Only refi’s and HELOCS that occur after the purchase are recourse.[/quote]
For the life of me (I wasn’t working in RE when this practice became common), I HAVE NO IDEA WHY ANY LENDER (either the one holding the 1st TD or a diff. one) would subordinate themselves to themselves or to the 1st TD holder at the time of purchase and make a 2nd “purchase money” loan (for a dn. pymt. perhaps?) and obtain a 2nd TD (purchase $$ NON RECOURSE paper) from the “buyer” in their “favor.” How risky is that??? It’s effectively 100%(+) financing and makes absolutely no sense at all to me.
These lenders must have been two jokers short of a full deck.
May 13, 2010 at 2:41 PM #550988Participant[quote=UCGal]To make matters worse – original purchase money loans (first and seconds trust deeds gotten at time of purchase) are NON RECOURSE in CA. Only refi’s and HELOCS that occur after the purchase are recourse.[/quote]
For the life of me (I wasn’t working in RE when this practice became common), I HAVE NO IDEA WHY ANY LENDER (either the one holding the 1st TD or a diff. one) would subordinate themselves to themselves or to the 1st TD holder at the time of purchase and make a 2nd “purchase money” loan (for a dn. pymt. perhaps?) and obtain a 2nd TD (purchase $$ NON RECOURSE paper) from the “buyer” in their “favor.” How risky is that??? It’s effectively 100%(+) financing and makes absolutely no sense at all to me.
These lenders must have been two jokers short of a full deck.
May 13, 2010 at 6:01 PM #550069sdrealtor
ParticipantWas having a conversation with an attorney today and here is the problem with walking away. Whether it is legal, moral, ethical or whatever it can come back to haunt you in the future.
If you are an attorney, someone who needs a security clearance, someone who works in the financial industry, someone who will handle finances for a company, someone who holds a position of trust or many other careers a foreclosure will show up on your credit report and there are 20 year reports that can be pulled.
No matter how you view it, try explaining to the HR rep what a “stand-up” guy or gal you are when this is on your record. No matter how good you can position it, would you expect to be viewed in the same light as an equally “stand-up” guy or gal who doesnt have that mark on their credit report?
There are no guarantees and it can easily amount to career suicide. I cant imagine anyone walking away and expecting it to be a free pass forever. Sooner or later it can easily come back and bite them on the ass in a way far more damaging than being underwater.
May 13, 2010 at 6:01 PM #550179ParticipantWas having a conversation with an attorney today and here is the problem with walking away. Whether it is legal, moral, ethical or whatever it can come back to haunt you in the future.
If you are an attorney, someone who needs a security clearance, someone who works in the financial industry, someone who will handle finances for a company, someone who holds a position of trust or many other careers a foreclosure will show up on your credit report and there are 20 year reports that can be pulled.
No matter how you view it, try explaining to the HR rep what a “stand-up” guy or gal you are when this is on your record. No matter how good you can position it, would you expect to be viewed in the same light as an equally “stand-up” guy or gal who doesnt have that mark on their credit report?
There are no guarantees and it can easily amount to career suicide. I cant imagine anyone walking away and expecting it to be a free pass forever. Sooner or later it can easily come back and bite them on the ass in a way far more damaging than being underwater.
May 13, 2010 at 6:01 PM #550671ParticipantWas having a conversation with an attorney today and here is the problem with walking away. Whether it is legal, moral, ethical or whatever it can come back to haunt you in the future.
If you are an attorney, someone who needs a security clearance, someone who works in the financial industry, someone who will handle finances for a company, someone who holds a position of trust or many other careers a foreclosure will show up on your credit report and there are 20 year reports that can be pulled.
No matter how you view it, try explaining to the HR rep what a “stand-up” guy or gal you are when this is on your record. No matter how good you can position it, would you expect to be viewed in the same light as an equally “stand-up” guy or gal who doesnt have that mark on their credit report?
There are no guarantees and it can easily amount to career suicide. I cant imagine anyone walking away and expecting it to be a free pass forever. Sooner or later it can easily come back and bite them on the ass in a way far more damaging than being underwater.
May 13, 2010 at 6:01 PM #550770ParticipantWas having a conversation with an attorney today and here is the problem with walking away. Whether it is legal, moral, ethical or whatever it can come back to haunt you in the future.
If you are an attorney, someone who needs a security clearance, someone who works in the financial industry, someone who will handle finances for a company, someone who holds a position of trust or many other careers a foreclosure will show up on your credit report and there are 20 year reports that can be pulled.
No matter how you view it, try explaining to the HR rep what a “stand-up” guy or gal you are when this is on your record. No matter how good you can position it, would you expect to be viewed in the same light as an equally “stand-up” guy or gal who doesnt have that mark on their credit report?
There are no guarantees and it can easily amount to career suicide. I cant imagine anyone walking away and expecting it to be a free pass forever. Sooner or later it can easily come back and bite them on the ass in a way far more damaging than being underwater.
May 13, 2010 at 6:01 PM #551048ParticipantWas having a conversation with an attorney today and here is the problem with walking away. Whether it is legal, moral, ethical or whatever it can come back to haunt you in the future.
If you are an attorney, someone who needs a security clearance, someone who works in the financial industry, someone who will handle finances for a company, someone who holds a position of trust or many other careers a foreclosure will show up on your credit report and there are 20 year reports that can be pulled.
No matter how you view it, try explaining to the HR rep what a “stand-up” guy or gal you are when this is on your record. No matter how good you can position it, would you expect to be viewed in the same light as an equally “stand-up” guy or gal who doesnt have that mark on their credit report?
There are no guarantees and it can easily amount to career suicide. I cant imagine anyone walking away and expecting it to be a free pass forever. Sooner or later it can easily come back and bite them on the ass in a way far more damaging than being underwater.
May 13, 2010 at 10:21 PM #550125ParticipantAmen, sdr. And, what kind of terms will a “walk-away” get on their “next” home loan? And, how much will it cost? That’s what I’d like to see – in writing – with the underwriter’s signature. Thank you and good night!
May 13, 2010 at 10:21 PM #550235ParticipantAmen, sdr. And, what kind of terms will a “walk-away” get on their “next” home loan? And, how much will it cost? That’s what I’d like to see – in writing – with the underwriter’s signature. Thank you and good night!
May 13, 2010 at 10:21 PM #550727ParticipantAmen, sdr. And, what kind of terms will a “walk-away” get on their “next” home loan? And, how much will it cost? That’s what I’d like to see – in writing – with the underwriter’s signature. Thank you and good night!
May 13, 2010 at 10:21 PM #550826ParticipantAmen, sdr. And, what kind of terms will a “walk-away” get on their “next” home loan? And, how much will it cost? That’s what I’d like to see – in writing – with the underwriter’s signature. Thank you and good night!
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