Short Sale, Foreclosure and Strategic Default

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Thursday, May 15, 2008

California Walk Away Plans and foreclosures


In mortgage market, ‘walkaway’ homeowners may be urban myth - Los Angeles Times
In mortgage market, ‘walkaway’ homeowners may be urban myth
Foreclosures

This article is an interesting. The title is deceptive. I would say 80% of my calls are from people who would walk away if they were not concerned about their credit. Of course when they learn about their exposure to deficiency judgments (for California real estate see - sold out juniors or judicial foreclosures) they become interested in short sales and deed in lieus.

The concept is also deceptive because my law partner found some stats which showed a very strong relationship between negative equity and foreclosures. And these stats were assembled prior to the current foreclosure "crisis".


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