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Deficiency Judgements (Post- Foreclosure)

By LarryPatrickMaloney follow LarryPatrickMaloney   2014 Oct 15, 8:55am 5,710 views   12 comments   watch   nsfw   quote   share    


http://finance.yahoo.com/news/americans-face-post-foreclosure-hell-wages-garnished-assets-053048943.html

Excerpt:
Reuters By Michelle Conlin
October 14, 2014 3:35 AM

By Michelle Conlin

NEW YORK (Reuters) - Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets.

...

What say you pat.net ?

I guess this just covers those that defaulted, right? If you got HAMP your A-OK.

Here is a list of states: (I haven't verified this)



#housing

1   LarryPatrickMaloney   ignore (0)   2014 Oct 15, 8:55am     ↓ dislike (0)   quote   flag      

Doh, sorry bout the double picture posting.

2   zzyzzx   ignore (2)   2014 Oct 15, 9:28am     ↓ dislike (0)   quote   flag      

Obligatory pay your bills deadbeat!

3   WillyWanker   ignore (1)   2014 Oct 21, 2:27am     ↓ dislike (0)   quote   flag      

I don't see any problem with this. If you borrowed the money and then got foreclosed you owe the bank some money.

Chickens coming home to roost, et al.

4   tatupu70   ignore (0)   2014 Oct 21, 2:57am     ↓ dislike (0)   quote   flag      

I miss Nomograph. I expected to see a post asking where his free house was...

5   bubblesitter   ignore (0)   2014 Oct 21, 3:39am     ↓ dislike (0)   quote   flag      

Wait, there is no free money in America? How shocking!

6   Blurtman   ignore (1)   2014 Oct 21, 4:43am     ↓ dislike (0)   quote   flag      

WillyWanker says

I don't see any problem with this. If you borrowed the money and then got foreclosed you owe the bank some money.

Chickens coming home to roost, et al.

And Tishman Speyer?

7   turtledove   ignore (0)   2014 Oct 21, 5:19am     ↓ dislike (0)   quote   flag      

This is so ridiculous. Someone has to pay the taxes. It's either the giver or the receiver. Since you cannot compel someone to give someone else a "gift," then it only makes sense that the receiver of the benefit should pay the taxes owed. Or would they prefer that the general public pay the taxes on their behalf?

8   mell   ignore (4)   2014 Oct 21, 5:36am     ↓ dislike (0)   quote   flag      

Blurtman says

WillyWanker says

I don't see any problem with this. If you borrowed the money and then got foreclosed you owe the bank some money.

Chickens coming home to roost, et al.

And Tishman Speyer?

There is no problem with any of this as long as the banks aren't bailed out. The banks should have the right to go after anybody who owes them, individual or corporate deadbeat, but of course often there's nothing left to seize. That's called tail risk and the Fed and the government have removed it, leading to moral hazard and dislocations/distortions as well as wealth inequality. Most of those loans would never be made, or only once until a correction like 2008 takes care of it. If bankers pump an asset as safe investment, knowing that it isn't, they should go to jail for fraud. We already have laws for this, Obama and placeholder just decided not to enforce them

9   tatupu70   ignore (0)   2014 Oct 21, 5:42am     ↓ dislike (2)   quote   flag      

mell says

That's called tail risk and the Fed and the government have removed it, leading to moral hazard and dislocations/distortions as well as wealth inequality

Complete and utter hogwash. Do you think that if you continue to rehash BS, it makes it more true??

How is it moral hazard--banks lost HUGE amounts of $$. Lehman went under. IndyMac went under. Several were acquired at fire sale prices.

Do you know what moral hazard is??

10   mell   ignore (4)   2014 Oct 21, 5:59am     ↓ dislike (0)   quote   flag      

tatupu70 says

How is it moral hazard--banks lost HUGE amounts of $$. Lehman went under. IndyMac went under. Several were acquired at fire sale prices.

Yeah, by TBTFs who were assured the bailouts.

tatupu70 says

Do you know what moral hazard is??

Being able to acquire an asset without any of your own cash results in => moral hazard

Being able to lend money backstopped by the taxpayer results in => moral hazard

There's no reason for people to be honest anymore or have morals in business transactions if they look at the Fed/government and banks for an example.

11   tatupu70   ignore (0)   2014 Oct 21, 6:32am     ↓ dislike (0)   quote   flag      

mell says

Yeah, by TBTFs who were assured the bailouts.

Ah--so I'm assuming there was a list of TBTF banks that was well known beforehand?

mell says

Being able to acquire an asset without any of your own cash results in => moral hazard

Not true--if you are on the hook for the loss, regardless of how much cash you put up, you've still got skin in the game. Regardless, what assets did banks acquire with no cash?

mell says

Being able to lend money backstopped by the taxpayer results in => moral hazard

Again--not true. If I told you that you could loan out $1MM to whoever you wanted and if it went bad, I would LOAN you an additional amount sufficient to keep you from going bankrupt--do you think that is moral hazard? Does that encourage you to make risky loans? You've still LOST $1MM.

mell says

There's no reason for people to be honest anymore or have morals in business transactions if they look at the Fed/government and banks for an example.

Complete BS.

12   HydroCabron   ignore (1)   2014 Oct 21, 6:41am     ↓ dislike (0)   quote   flag      

Hahahaha!

Hahahahahahahaha!

People being chased down and having wages garnished to pay for past foreclosures - that's really putting wind into the sails of middle-class spending right there: NOT!

Some of these people will barely be able to make rent on a popcorn-ceiling apartment in the single-mother section of town.

This is great news for the housing market!


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