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Rt.66
ParticipantNew York is a quasi no-recourse state in that they have a one action rule. A lender can go for a foreclosure OR sue for the deficiency.
Though CA is a non-recourse state the non-recourse aspect generally only applies to “purchase money” loans (original first).
So HELOCs and equity loans can result in law suits for collection unless the second initiates a foreclosure (not likely here). I expect we will see our own versions of this tactic in CA by lenders taking advantage of those rules.
May take a while though as today’s climate would bring unwanted hostility to lenders going for the jugular of the poor deadbeat. But rest assured they will come for their money sooner or later.
The practice of extracting money out of deadbeats who defaulted on 2nds will be a popular and easy money maker in the years to come. Future earnings beware!
ParticipantNew York is a quasi no-recourse state in that they have a one action rule. A lender can go for a foreclosure OR sue for the deficiency.
Though CA is a non-recourse state the non-recourse aspect generally only applies to “purchase money” loans (original first).
So HELOCs and equity loans can result in law suits for collection unless the second initiates a foreclosure (not likely here). I expect we will see our own versions of this tactic in CA by lenders taking advantage of those rules.
May take a while though as today’s climate would bring unwanted hostility to lenders going for the jugular of the poor deadbeat. But rest assured they will come for their money sooner or later.
The practice of extracting money out of deadbeats who defaulted on 2nds will be a popular and easy money maker in the years to come. Future earnings beware!
ParticipantNew York is a quasi no-recourse state in that they have a one action rule. A lender can go for a foreclosure OR sue for the deficiency.
Though CA is a non-recourse state the non-recourse aspect generally only applies to “purchase money” loans (original first).
So HELOCs and equity loans can result in law suits for collection unless the second initiates a foreclosure (not likely here). I expect we will see our own versions of this tactic in CA by lenders taking advantage of those rules.
May take a while though as today’s climate would bring unwanted hostility to lenders going for the jugular of the poor deadbeat. But rest assured they will come for their money sooner or later.
The practice of extracting money out of deadbeats who defaulted on 2nds will be a popular and easy money maker in the years to come. Future earnings beware!
ParticipantNew York is a quasi no-recourse state in that they have a one action rule. A lender can go for a foreclosure OR sue for the deficiency.
Though CA is a non-recourse state the non-recourse aspect generally only applies to “purchase money” loans (original first).
So HELOCs and equity loans can result in law suits for collection unless the second initiates a foreclosure (not likely here). I expect we will see our own versions of this tactic in CA by lenders taking advantage of those rules.
May take a while though as today’s climate would bring unwanted hostility to lenders going for the jugular of the poor deadbeat. But rest assured they will come for their money sooner or later.
The practice of extracting money out of deadbeats who defaulted on 2nds will be a popular and easy money maker in the years to come. Future earnings beware!
December 9, 2009 at 11:46 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492308ParticipantFrom “Principal reductions” link:
http://effectivedemand.blogspot.com/2009…
“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
December 9, 2009 at 11:46 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492472ParticipantFrom “Principal reductions” link:
http://effectivedemand.blogspot.com/2009…
“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
December 9, 2009 at 11:46 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492854ParticipantFrom “Principal reductions” link:
http://effectivedemand.blogspot.com/2009…
“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
December 9, 2009 at 11:46 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492942ParticipantFrom “Principal reductions” link:
http://effectivedemand.blogspot.com/2009…
“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
December 9, 2009 at 11:46 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #493180ParticipantFrom “Principal reductions” link:
http://effectivedemand.blogspot.com/2009…
“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
December 9, 2009 at 10:58 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492273Participantjoestool That was just hilarious and full of truth and wisdom all at the same time!
Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?
December 9, 2009 at 10:58 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492438Participantjoestool That was just hilarious and full of truth and wisdom all at the same time!
Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?
December 9, 2009 at 10:58 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492819Participantjoestool That was just hilarious and full of truth and wisdom all at the same time!
Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?
December 9, 2009 at 10:58 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #492907Participantjoestool That was just hilarious and full of truth and wisdom all at the same time!
Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?
December 9, 2009 at 10:58 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #493145Participantjoestool That was just hilarious and full of truth and wisdom all at the same time!
Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?
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