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ptiemann - since B refi'd, isn't his loan now a recourse loan? Did the bank just forgive him even though they could go after him?
ptiemann - since B refi’d, isn’t his loan now a recourse loan? Did the bank just forgive him even though they could go after him?
yes, they could obtain a judgment for the difference.
A bankruptcy filing would be the sufficient response.
And I have heard an anecdote that a lender obtained such a judgment against a business partner’s client, supposedly it happened this year.
The likelihood is probably 1:100,000.
Peter
I don't understand why the likelihood is so low. 3-4 years prior, B just took $600k from the same bank, and now you're saying the bank simply forgets about it and lets B off the hook. Aren't these the same banks that charge you $35 for overdraft fees? I could see some instances where the bank can't track things, but this situation doesn't seem all that complicated.
Patrick
2010 Jul 15, 4:15am
Nomograph
There, much better. That was strange, who changed my screen name? 1948 isn’t even my birth year.
Sorry about that. It was me, making all the usernames distinct. There was more than one Nomograph registered, so I appended the user ID number to make them distinct. Now that you've claimed exactly "Nomograph" no one else can spoof your name. I hope the fix is worthwhile.
I personally know of several shortsale scammers in Arizona. All of them bought new homes at great prices before short-selling their current upside-down homes. None needed to short sale---they all had fantastic incomes and could have paid the mortgages on their upside-down homes. One had a relative "buy" the new house which was a bargain because it was a foreclosure. He then got a short sale ok on the old McMansion. The relative will "sell" the new home back to this guy when it is safe to do so without suspicion. Of course those who own their homes outright and lived within their means are unable to sell their homes without taking a huge loss.  It is sick, sick, sick.
#housing