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Why doesn't he post himself?
This guy sounds like he can't take responsibliity for his own acts. He's looking at everyone to save him.
He risked his own and the bank's capital on an inflated asset.
He wants the bank to lose their capital for his mistake. He further wants to keep his credit score.
You, the bank, his father, and some shyster lawyer are supposed to clean his dirty diapers for him.
Ummm, yea well he doesn't follow this site, I do. He's simply looking for his best options, given the circumstances. Like anyone would do. My question, is this possible or is the RE attorney just blowing smoke?
Not a lawyer, but non-recourse means that if they foreclose on the property, then they cannot go after him for the difference.
So it sounds like you have it right. Ask the lawyer to provide case precedents for what he is talking about.
Â¥
2012 Feb 4, 5:21am
Wouldn't there always appear to be a lien on the property and it would never get a clean title search?
Yes. The only way to get clean title is to give the bank money.
How much money is the interesting question.
The deed of trust on the property gives the bank the right to prevent the title from being deeded to someone else.
toothfairy
2012 Feb 4, 9:13am
I dont think the bank has to accept it but he can use that a a negotiating point. The bank can take the offer or he'll just stop paying and they'll lose even more.
Most likely they wont go for it. Why should he get 300k lopped off his mortgage for making a bad decision. Most likely they wont go for it since the difference is so large If I were the bank I'd bet on trying to recover some of that loss in foreclosure rather than giving a new loan to a guy who's ready to walk away from his mortgage.
Hello everyone, I have been a long long time lurker. Love this site, both the forums and the links. The reason I have officially joined is because I have a question for you all. My friend lives in SF. He bought a condo in '06 in San Jose for around 480k, it is now worth somewhere around 200-220k. He put 20% down when he bought, lived in the condo for two years, and has been renting out the condo since. He has a non-recourse loan so I always told him that he should strategically default and stop throwing his money away, as I thought this was his only option to "get out." He doesn't like the idea of hurting his credit. He recently hired a real estate attorney. The RE attorney has told him that if he finds a buyer willing to buy his condo at market price, brings this information to the bank. He can basically tell the bank I have a buyer at market price, this is a non-recourse loan, so I'm selling the property and not paying the difference. (loss of about 170k) Coincidentally, his dad is willing to be that buyer to facilitate this process. I have never heard of anything like this, have any of you? I don't understand how the bank would release the mortgage after the sale? Wouldn't there always appear to be a lien on the property and it would never get a clean title search? I told him that I was really skeptical about this, but to keep me in the loop as this progresses.
#housing