Short Sale, Foreclosure and Strategic Default


Friday, June 1, 2007 Exclusive Exclusive

If something like this happened to you or your seller and they are now looking to do a short sale, have them speak with a lawyer. There may be a great deal of leverage for the homeowner.

here is a quote from one of the pitchmen.

Making the Pitch

Afghani says sales pitches typically focused on what a borrower could do with all of that money rather than on fees buried in paperwork or annual interest rates as high as 10.5 percent at the time, at least 2 percentage points more than the rates that banks charge people with good credit.

``Even with explanations, most borrowers didn't really understand what types of loans they were getting,'' says Maureen McCormack, another former Secured Funding employee. ``They just cared about the monthly payment.''

The sales job was made easier with exotic mortgages such as so- called no-doc loans, which enable borrowers to get loans without having to supply evidence of income or savings, and option ARMs, adjustable-rate mortgages that let people pick how big a payment they will make from month to month. The loans offer upfront teaser rates at the cost of tacking the deferred payments onto the balance of the loan.

``Heavy sales pressure has been part of the most-egregious lenders for a while,'' says Kurt Eggert, a professor at Chapman University School of Law in Orange, California, who has studied the role of aggressive sales tactics in subprime lending and sued lenders on behalf of elderly borrowers caught up in home equity scams.

Tuesday, May 29, 2007

Here is a video of story showing what a former homeowner did after he suffered a foreclosure.

the story was on called "what a pigsty".

Sunday, May 27, 2007

IRS kicks homeowners while they're down

More information about what may happen if you negotiate relief with a lender without and eye towards the IRS tax bill. All homeowners must speak with Attorneys about this tax consequence. An attorney may develop facts that can be used to reduce or eliminate the Lenders ability to claim a deficiency.

San Jose Mercury News - Harney: IRS kicks homeowners while they're down

Homeowners lose equity, title to foreclosure `rescuers'

Homeowners must watch out for scams. Some of the foreclosure helpers are out to help you out of your equity.

San Jose Mercury News - Homeowners lose equity, title to foreclosure `rescuers'