[HLS]

There is a price to pay.
Generally a purchase loan is non recourse debt.
The property is security for the loan, without recourse.

If you have refinanced, whether you took out cash OR NOT, it is usually recourse debt.
You can get a deficiency judgment for what the lender loses, which is worse than a short sale and getting a 1099.
With a 1099 you only owe income tax on the amount.

With a DJ, you could owe the entire amount.

A foreclosure will be on credit report for 7 years, and score will get whacked.

[HLS]

There is a price to pay.
Generally a purchase loan is non recourse debt.
The property is security for the loan, without recourse.

If you have refinanced, whether you took out cash OR NOT, it is usually recourse debt.
You can get a deficiency judgment for what the lender loses, which is worse than a short sale and getting a 1099.
With a 1099 you only owe income tax on the amount.

With a DJ, you could owe the entire amount.

A foreclosure will be on credit report for 7 years, and score will get whacked.

[HLS]

The underlying investors. If could be hedge funds, private funds, banks, Wall Street firms, Insurnace Co, or Govt backed (FNMA, FHA,) etc.

The spill over affects lots of people and jobs.
What Bernanke said was contained to subprime a couple of months ago is now “deteriorated significantly”
They still aren’t telling the truth, IMO.

[HLS]

The underlying investors. If could be hedge funds, private funds, banks, Wall Street firms, Insurnace Co, or Govt backed (FNMA, FHA,) etc.

The spill over affects lots of people and jobs.
What Bernanke said was contained to subprime a couple of months ago is now “deteriorated significantly”
They still aren’t telling the truth, IMO.

[HLS]

Perry,,no problem with your humour 😉

I’m sure that lender knows it’s a rental.
The statements are probably sent to a diff address.

In many cases today, when people refer to the “lender”, it’s actually just a servicing company.
The paper on this ARM was probably sold off on Wall St.

The servicing company collects the payments and files NOD’s etc. It’s a boring job these days, but it’s job security.

When “short sale” offers are submitted, nobody jumps at them. They can sit around for weeks without an answer.
It’s not a priority, although you’d think it would be.

Presenting a SS offer with a 48 hour deadline probably goes into the trash pile.

There are entry level people in some positions that just shuffle files around. They don’t have the authority to make a decision.

I still wonder why they are called SHORT SALES. The IRS calles it “Debt Relief”
Short Sales only refer to stock market shorts in the outside world.

[HLS]

Perry,,no problem with your humour 😉

I’m sure that lender knows it’s a rental.
The statements are probably sent to a diff address.

In many cases today, when people refer to the “lender”, it’s actually just a servicing company.
The paper on this ARM was probably sold off on Wall St.

The servicing company collects the payments and files NOD’s etc. It’s a boring job these days, but it’s job security.

When “short sale” offers are submitted, nobody jumps at them. They can sit around for weeks without an answer.
It’s not a priority, although you’d think it would be.

Presenting a SS offer with a 48 hour deadline probably goes into the trash pile.

There are entry level people in some positions that just shuffle files around. They don’t have the authority to make a decision.

I still wonder why they are called SHORT SALES. The IRS calles it “Debt Relief”
Short Sales only refer to stock market shorts in the outside world.

[HLS]

OK,, Please update the forum when you can.

I wouldn’t start packing yet.

[HLS]

OK,, Please update the forum when you can.

I wouldn’t start packing yet.

[HLS]

I’d say that you have plenty of time, and probably not have to move at all. Many real estate agents mislead sellers about the possibility of a short sale.

Lenders are not the borrower’s partner in the loan.
Just because the property has dropped in value, doesn’t mean that the borrower can complete a short sale, especially on a rental property.

A short sale hardship application package needs to be submitted to the lender. If the borrower has assets, they CAN afford the payments, although they may not want to pay them.

They probably won’t get approved. This is a rental property, not primary residence.
Your landlord probably has other assets, and until those are exhausted and it’s a hardship to pay, why should a short sale even be considered. They are getting rental income from you.

If a short sale was as easy as saying my property is worth less than I owe, I’ll do a short sale, there would be 10 times the number of properties on the market (or more)
Seems that some real estate agents don’t understand this.

Regardless of what a borrower tells the lender, as long as payments are being made there is NO problem in the lenders eyes.

Once the borrower misses a few payments, the service company will yawn and start some communication, it’s just another statistic to them.

Your landlord’s credit score will be whacked 150-200 points or more due to late payments.
A non neg am loan payment plus taxes & ins will cost them over $4,000 a month.

Like many other foolish people, your landlord got involved in a game that they didn’t understand the rules,playing way out of their league.
He took a gamble and lost, There is a price to pay.

If a short sale were accepted, I wonder if your landlord knows that they could get a 1099 from the lender, and that $120,000 +/- of debt relief will be reported as income to them, and they will owe income tax on that amount for the current year.

If I am wrong, you should get at least 60 days notice to move. If they let the property go into foreclosure, you may get a notice from loan servicer to start making rent payments to them. That’s when it gets sticky, because your rental agreement is with landlord.

Without knowing more about your landlord’s financial situation it’s hard to say, but if they own a primary home and have a job, some equity or other assets, I wouldn’t worry about filling out a change of address form anytime soon.

Not wanting to pay OR really not being able to pay is the issue.

[HLS]

I’d say that you have plenty of time, and probably not have to move at all. Many real estate agents mislead sellers about the possibility of a short sale.

Lenders are not the borrower’s partner in the loan.
Just because the property has dropped in value, doesn’t mean that the borrower can complete a short sale, especially on a rental property.

A short sale hardship application package needs to be submitted to the lender. If the borrower has assets, they CAN afford the payments, although they may not want to pay them.

They probably won’t get approved. This is a rental property, not primary residence.
Your landlord probably has other assets, and until those are exhausted and it’s a hardship to pay, why should a short sale even be considered. They are getting rental income from you.

If a short sale was as easy as saying my property is worth less than I owe, I’ll do a short sale, there would be 10 times the number of properties on the market (or more)
Seems that some real estate agents don’t understand this.

Regardless of what a borrower tells the lender, as long as payments are being made there is NO problem in the lenders eyes.

Once the borrower misses a few payments, the service company will yawn and start some communication, it’s just another statistic to them.

Your landlord’s credit score will be whacked 150-200 points or more due to late payments.
A non neg am loan payment plus taxes & ins will cost them over $4,000 a month.

Like many other foolish people, your landlord got involved in a game that they didn’t understand the rules,playing way out of their league.
He took a gamble and lost, There is a price to pay.

If a short sale were accepted, I wonder if your landlord knows that they could get a 1099 from the lender, and that $120,000 +/- of debt relief will be reported as income to them, and they will owe income tax on that amount for the current year.

If I am wrong, you should get at least 60 days notice to move. If they let the property go into foreclosure, you may get a notice from loan servicer to start making rent payments to them. That’s when it gets sticky, because your rental agreement is with landlord.

Without knowing more about your landlord’s financial situation it’s hard to say, but if they own a primary home and have a job, some equity or other assets, I wouldn’t worry about filling out a change of address form anytime soon.

Not wanting to pay OR really not being able to pay is the issue.

[HLS]

Cashman: What area you in ?

What price home are you looking to buy ?
You see no decline in your area ? You cannot get more house for the same money compared to a year ago ?

[HLS]

Cashman: What area you in ?

What price home are you looking to buy ?
You see no decline in your area ? You cannot get more house for the same money compared to a year ago ?

[HLS]

MEDIAN does not have to fall !!
It is possible that the market can plummet and the median could stay the same.
You will get much more for your money though.

Don’t you understand that it is a meaningless comparison ????
Apparently you’re tricked JUST LIKE THEY WANT YOU TO BE.

[HLS]

MEDIAN does not have to fall !!
It is possible that the market can plummet and the median could stay the same.
You will get much more for your money though.

Don’t you understand that it is a meaningless comparison ????
Apparently you’re tricked JUST LIKE THEY WANT YOU TO BE.

[HLS]

JWM, sorry that I wasn’t clear.
I was saying that the stock market rise can continue.

The housing bubble wasn’t my point..

[Author]

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