strategic default: Strategic Defaulters in the Crosshairs...Again
- 10/18/13 12:13 AM
They’re back, they’re mad and on the hunt for strategic defaulters. We wrote about the OIG “mortgage cops” about a year ago; sounds like they’re back at it. Fannie and Freddie have been tasked to collect unpaid mortgage debt from “strategic defaulters,” those underwater home owners who skipped out on their mortgages even though they had the ability to pay. If a home is sold at foreclosure but the proceeds don’t cover the outstanding balance of the home owner’s loan, the mortgage giants can pursue judgments against the home owner forcing him or her to pay the deficiency. And the Federal Housing Finance Agency, which … (1 comments)
strategic default: Mortgage Cops From OIG Pursuing Strategic Defaulters?
- 11/05/12 12:27 AM
Strategic defaulters, beware. The feds are coming for you. And they are not happy. Not the FBI. The Office of the Inspector General at the Federal Housing Finance Agency. The OIG may not have the same fearsome “G-man” reputation as its better-known counterparts at the Federal Bureau of Investigation, but it is every bit as much a law enforcement agency, with the same powers to search, seize and arrest. Special OIG agents are even authorized to carry firearms. The OIG’s mission is to seek administrative sanctions, civil recoveries and criminal prosecutions against anyone who abuses the FHFA’s programs. And it … (0 comments)
strategic default: 32% Say OK to Walk Away, 36% Say OK to Poor Credit - Oh Boy
- 10/11/12 04:15 AM
Thirty-two percent of Americans surveyed say home owners should be able to strategically default on their mortgages without facing any consequences for doing so, according to data compiled by JZ Analytics. What’s more alarming, 13 percent say they would likely strategic default and another 17 percent say they know others who have already walked away from their mortgage obligations. Thirty-six percent of Americans surveyed also said they believe it’s acceptable to have a poor credit score. "What jumped out is how many Americans feel it is acceptable for home owners to walk away from a mortgage and go into foreclosure,” says … (3 comments)
strategic default: Shorts vs Foreclosure vs Strategic Default vs DIL - All Bite
- 08/22/12 04:01 AM
Many Atlanta homeowners and others around the country find themselves underwater; unable to afford the home they live in. Those in this position often wonder, is it better to short sale, strategically default, try a deed in lieu or just let the lender foreclose? As expected, there is no one size fits all answer. Below are a few key points of each – of course consult an attorney for the best advice. Short Sale: avoid a foreclosure or bankruptcy on your credit record faster rebuilding of credit often avoids a deficiency judgement bonafide offer is required expect significant paperwork requirements multiple … (0 comments)
strategic default: Strategic Default - Not Who You Think & Not Going Away
- 04/17/12 09:27 AM
Strategic default isn’t likely to go away for a long while and the likely 150 point credit hit most defaulters will receive isn’t incentive enough to avoid it. Strategic default in Atlanta is alive and well; the typical defaulter isn’t what most would expect and the thought process is even less complex. In short, the most likely defaulter considers this business; nothing more and nothing less. People with high credit scores and big mortgages are actually the most likely to strategically default. These people are educated in finance and understand the consequences of walking away from their home, and choose to … (3 comments)
strategic default: Should You Strategically Default? Almost Half Would
- 03/21/12 04:31 AM
Nearly half of home owners recently polled in an online survey said they would walk away from their mortgage if home prices continued to fall. The poll included 1,000 visitors to HousingPredictor, a real estate Web site. While the poll is unscientific, some housing experts have questioned whether home owners are starting to grow more acceptance of the strategic default idea. Strategic default is when home owners walk away from their mortgage obligations, despite being able to make their payments. In a similar poll in March 2010, HousingPredictor found that 32 percent said they would strategic default if prices fell further … (2 comments)
strategic default: Increase in Lenders Chasing Deficiency Judgments
- 02/21/12 05:16 AM
Sweating out a distressed sale or foreclosure may not absolve an owner from the long arm of those due money. Banks can employ what is called a deficiency judgment (the difference between the outstanding mortgage balance and the sale price) to collect the debt, requiring a defaulting borrower to pay the balance of a loan and any fees, minus what the bank recovers when it sells the home. In a worst-case scenario for borrowers, banks could garnishee wages to pay off the loan balance. Lenders traditionally have not pursued such debts because there has been little money to collect. But lenders … (0 comments)
strategic default: Hanging onto the House, Even After the Fall
- 11/14/11 10:16 AM
The idea of walking away from an underwater home has been top of mind for the last several years. But what about the people that are hanging onto the house, even after the fall in real estate prices? Although not as many articles have been written about such owners, there are many that continue to try and fulfill the contract they signed and pay that mortgage. The Murphy's are a couple outside of Charlotte and a recent NY Times article highlighted their situation... “Little did we know,” said Mr. Murphy, “that within 24 months after we bought this place that this … (7 comments)
The HMT blog is written by Hank Miller of The Hank Miller Team. He is a licensed broker and certified real estate appraiser in the state of GA. Since 1989, real estate has been his full time occupation and Hank consistently ranks at the very top of Atlanta area agents in overall production. He is known as much for his attention to detail as he is for his candor.
They’re back, they’re mad and on the hunt for strategic defaulters. We wrote about the OIG “mortgage cops” about a year ago; sounds like they’re back at it. Fannie and Freddie have been tasked to collect unpaid mortgage debt from “strategic defaulters,” those underwater home owners who skipped out on their mortgages even though they had the ability to pay. If a home is sold at foreclosure but the proceeds don’t cover the outstanding balance of the home owner’s loan, the mortgage giants can pursue judgments against the home owner forcing him or her to pay the deficiency. And the Federal Housing Finance Agency, which … (1 comments)
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