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Banks Desperately Trying To Scare Debtors?
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2010 Feb 3, 7:42am 19,257 views 56 comments
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Corporations don’t feel guilty about walking away from a contract they don’t like and they prey on the tendencies of lesser “persons†to wish to pay their debts. Don’t do it if it doesn’t make financial sense for you. Look at it this way: everyone will be better off when real estate prices are a third of what they are now, and you’re helping bring it about.
Hear hear! I'll just sit on my nest egg and wait to pick up apt buildings. Then those people who walked away can try to rent from me! I'm sure when this happens it will be my fault that I own they rental.
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Why the sudden rash of scare stories about banks going after mortgage walkaways?
I bet the banks are arranging those news stories because the banks are terrified of the coming deluge of walkaways, especially in non-recourse states like California where the law explicitly states that the only backing for the mortgage is the house itself, not your other assets.
What I want to see are real statistics on the percent of defaults that end up with a deficiency judgements, so I can see whether this is all just a bluff. A huge part of the bubble happened in California and Florida alone, and those are in this list of non-recourse states I found:
Alaska
Arizona
California
Connecticut
Idaho
Minnesota
North Carolina
North Dakota
Texas
Utah
Washington
Even if it were real, it's not going to help anything to try to squeeze blood from a stone. In recourse states, unemployed debtors will convert their bank accounts to cash and walk away anyhow.
#housing