foreclosure: Is it right to walk away from your Mortgage - The law says yes in CA - 07/09/09 06:01 AM
I blogged on this subject many months ago. Recently the debate has popped up again.  
A recent study determined that homeowers are willing to walkaway after their homes start to decline by more than 10%.  
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/06-26-2009/0005051034&EDATE=
 
There is a debate here on activerain about whether this is a moral issue or not. 
1.  By giving credit to anyone with a pulse the banks allowed to demand to outpace supply. Prices went up. 
(The fed created the bubble by allowing credit to loosening during a bubble.  The fed is owned by regional member banks.  Those banks are owned by … (4 comments)

foreclosure: Can a lender collect on the Deficiency collection after a forceclosure - 02/18/09 07:21 AM
uestion from R (contact info withheld)
 
Subject: HELOC debt collection (Sent via Activerain)
My home foreclosed back in Oct. We had an offer on the house, but the the two lenders could not come to an agreement on how much the second (WAMU) would get. The first lender decided to let it go to auction, no one bid on it and they got it back and proceeded with the sale. Second lender WAMU didn't get anything. I saw on my credit that WAMU charged off the loan, so I thought it was taken care of, then I got a letter … (2 comments)

foreclosure: Short Sale becomes Foreclosure - CA Assoc Realtors warning to Realtors - 10/04/07 02:41 AM
In the October issue of Real Estate magazine on page 10 a staff attorney for the California Association of Realtors gave a interesting scenario in which a California Realtor wanted to represent "Rick who was willing to buy Susan's home as an investment. Susan was elated with the full value offer because she wanted to sell the home before the Foreclosure sale.   Susan's lender had properly recorded a notice of default. 
Can a Realtor represent Rick?  No, it is illegal under the California Home Equity Sales Act because Rick does not have an insurance bond.  (none are offered in California). 
If … (6 comments)

foreclosure: California Real Estate Law - Is a home equity loan non recourse - 09/05/07 06:16 PM
Here is a great question I got the other day from an on the ball Realtor.  I have told him I am going to research the case law to pin this question.  I already have my basic answer but if Indymac were coming after me I would not feel too comfortable with out some case law.  I will get to it and report it here as soon as I have time to look it up. 
In the mean time, how would like to make the banks argument and who would like to make the homeower's argument.  And what does a sold out … (85 comments)

foreclosure: Are Short sales practices destroying the market? (part 2) - 09/03/07 06:41 PM
Below is a comment from a thoughtful Realtor - with some interesting points.  I will break his comment down.  His comment is in quotes and my thoughts are below each section.   
 "Interesting take John. But it's been my experience that the lender will not even talk to me until I have an offer on the property. Unless you know something I don't I have NEVER been able to get an "approved price" prior to presenting an offer. I wish I could though. It would make my job so much easier."
Response -
After offering a deed in lieu, I have had a lender ask … (11 comments)

foreclosure: Short sale disaster narrowly avoided - 08/15/07 11:39 AM
Today I met with a man in San Diego who has a significant income and a property up in northern CA (his former home) his Realtor can't sell at or near the listing price.     
His property is upside down. He has a first and a second loan. (His first is purchase money and there is some ambiguity as to whether his second is non recourse)  He has the property listed with a Realtor for less than he owes.  Any offers he has had are significantly below the listing price.  The man is very concerned about his credit. 
A few weeks ago … (5 comments)

foreclosure: Would Hoover be calling for a tightening? - 08/12/07 08:29 AM
Many financial sites and commentators have been calling for the fed to follow a tight financial policy in relation to the current credit crisis.  
I think Herbert Hoover would call for a tightening right now.  
One of the largest drivers of America's and consequently the world's financial engine has been Americans belief that they have plenty of equity in their home.  That big pile of equity was nice safety net and allowed us to buy those big screen T.V.s and eat at Outback where "Victoria's cut" 9 0z Filets Mignon's  have gone from $12.99 to 20.99 over the last 4 years.  … (1 comments)

foreclosure: Are Short Sale Advisors practicing law without a license - 06/19/07 05:25 AM
Here is a quote from a Realtor.Org article seemingly meant to educate Realtors on how to do short sales.  
 
In read this in an article from Realtor.org. 
"Question 
 What financial or credit liabilities will a seller have as a result of a short sale?Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.It’s … (8 comments)