In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms

Good.

Anyone that walks away from a contract because they are pissed because they were stupid and overpaid should be held accountable.

There is a difference between losing a job or a divorce causing an inability to afford to pay the mortgage payment and just walking away from a contract because you're pissed that you paid too much.

There is a difference between losing a job or a divorce causing an inability to afford to pay the mortgage payment and just walking away from a contract because you're pissed that you paid too much.

#1 | Posted by 726

No, there's not. If you agree to something and don't follow through, it doesn't matter what the circumstances are. The bottom line is you don't make the payments. Pretending your marriage breaking up matters to the person you borrowed the money from is delusional.

In addition, what a lot of people don't realize is that if you can manage to settle with the bank or have a percentage of the loan forgiven, that this amount then becomes taxable income to the IRS.

For those who simply walk away, it seems unlikely that a bank would sue them, since they have very little in terms of assets to go after. However, I think a lot of people fail to realize that just because debt may seem to go away, or even disappear off of credit reports after 7 years, that statute of limitations can be significantly longer and can lead to lawsuits down the line.

I almost wonder if debt collectors could make out like bandits by buying these debts now for pennies on the dollar and then going after people in several years once the economy starts to recover.

Anytime you take a loan you take a risk. Your wager was that you would be able to pay it back, when you lose the wager, you continue to pay until you have fulfilled your responsibility. Just because the house became worth far less than the amount you pay does not mean you can walk away.

"Your wager was that you would be able to pay it back, when you lose the wager, you continue to pay until you have fulfilled your responsibility. "

Unless, of course, you're the banker. Then, despite the fact you took the same risks, you get to walk away, and go straight to the taxpayer...something the homeowner doesn't get to do.

If Goldman Sachs makes an investment in a company (AIG) that later goes bankrupt, the federal government swoops in and pays them 100 cents on the dollar. When Morgan Stanley buys five San Francisco office buildings then turns them back over to the lender to get out of the mortgage, no consequences whatsoever. But some schmoe in Miami who wakes up to find his home worth half what it was has to pay his mortgage ad infinitum. If he has to refinance a 3/1 or 5/1 ARM, the libbies on this board will insist he raid his retirement accounts for the momney.

But as long as Obama and Frank are on the payrolls of the big investment banks, 726 will put on the pompoms for making everyone on Main Street keep these big banks afloat.

Get a better job bitch!! So what, you ripped off your ex and now have trouble paying. Too bad so sad.

I see absolutly nothing wrong here.

In a "short sale", the bank agrees to write off the difference. Sounds like she got screwed.

Hopefully she wins in court. If no, there are hundreds of thousands of would-be short sellers who will just abandon their homes.

Give the banks credit: they're so oblivious to the consequences of everything they do, and they constantly wind up screwing themselves.