The housing crisis will spark a wave of lawsuits filed by lenders seeking to recoup loses on home sales and foreclosure auctions that do not return enough money to pay the mortgages in full, according to real estate and legal experts.
Experts predict that mortgage companies will begin to sue home owners in the next two years, including borrowers who ransack a house that has been lost to foreclosure and those who walk away from "underwater mortgages," with hopes of discouraging others from such behavior.

Lenders are unlikely to target borrowers who negotiate in good faith or have defaulted on their home due to job loss or other unforeseen circumstances; other borrowers could be hounded by collection agencies that have purchased their mortgage debt from their lender.

Source: RISMedia (06/08/10)

 
Posted by Guy Adams on 06/09/2010 02:42 PM   Comments (1)   Foreclosures in the Mortgage / Finance Channel   foreclosures  
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This post has been included in Ohio Real Estate News

1 Comments on Lenders Warn Foreclosure May End in Lawsuit

JUN
09
2010
105,884 Points 4 Featured Posts Called Shot Master

The best way to protect against this is bankruptcy, if you qualify of course.
2:52pm • #1


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