Nonprime Mortgage Maps

[AAbsolute]

I wonder how much of those "assets" were in other real estate at the time. There's certainly no guarantee that assets held at time of loan app remain in the picture today, even cash assets.

This is why I believe some lenders are forcing the foreclosure rather than renewing a loan without the borrower bringing hundreds of thousands of dollars cash to closing. If a person owns a couple properties it may be advantageous to a lender to force a liquidation if the borrower does not agree to bring cash. This way the lender can be first in line for deficiency.

 

[heathernken]

I know at least one party who is facing the end of the lot loan and is up for renewal in Watersound West Beach. The lot was over 700,000 from JOE in 2005 and a comp. is now 275,000 from JOE today. The bank wants big cash or they're going to foreclose and try to collect the deficiency against the borrower. If the bank succeeds they will have improved their balance sheet with no loss. This is based on the theory that you can't short sell just because you are upside down. If a borrower has assetts the lender has a right to recover same. They don't always lose.

I have a Doctor friend who has a Wachovia lot loan that was up for renewal. They wanted around a 150K to renew, plus a hefty interest rate increase. They went back and forth. He just kept telling them that they either had to renew it or they could have the lot. He made the case that there is a limit to how much money his good credit was worth, and they could either keep getting the same payments, or go to war with him for the difference. They relented and rewrote the deal exactly the same as it had been. Certainly with a Doctor, you can figure that they would eventually get the shortfall out of him, but they opted to re write it. I guess its just the luck of which lender you are dealing with. One thing is for certain- these lenders do not want these lots.

 

[Miss Kitty]

I have a Doctor friend who has a Wachovia lot loan that was up for renewal. They wanted around a 150K to renew, plus a hefty interest rate increase. They went back and forth. He just kept telling them that they either had to renew it or they could have the lot. He made the case that there is a limit to how much money his good credit was worth, and they could either keep getting the same payments, or go to war with him for the difference. They relented and rewrote the deal exactly the same as it had been. Certainly with a Doctor, you can figure that they would eventually get the shortfall out of him, but they opted to re write it. I guess its just the luck of which lender you are dealing with. One thing is for certain- these lenders do not want these lots.

I am confused. Is the Doctor paying back what the bank loaned him for the lot?

 

[heathernken]

Two questions:

Does anyone have knowledge of someone who actually was sued for deficiency around here, or are these just threats?

and
Is there a time limit for a deficiency judgement in Florida? I think Georgia has a 6 month time limit.

 

[heathernken]

I am confused. Is the Doctor paying back what the bank loaned him for the lot?

Yes. He has been current, but the loan was only for 3 years. When he tried to renew it, they wanted 150K because the appraised value had fallen. Then in lieu of the 150K they "offered" to secure the extra 150K with a lien on his personal residence. He just kept saying no, then eventually they relented.

 

[heathernken]

Bailout worries

What worries me is that with this bailout, why would these lenders work with anyone? Now that the Feds are going to be paying a premium for these toxic "assets", they will be under no pressure to deal, and that means for foreclosures or short sales. And all with our tax money. Makes me ill to think about it.

 

[TooFarTampa]

Yes. He has been current, but the loan was only for 3 years. When he tried to renew it, they wanted 150K because the appraised value had fallen. Then in lieu of the 150K they "offered" to secure the extra 150K with a lien on his personal residence. He just kept saying no, then eventually they relented.

So it was a 3-year balloon, right? Great that he was able to get a loan modification. Did they give him another balloon or just convert the loan to a 30-year term with the same rate? Every little bit of info helps anyone else out there who might be reading this. After watching what is happening with the massive bailouts, I think it's time that the folks with good credit and payment histories start sticking up for themselves! :angry:

 

[AAbsolute]

Two questions:

Does anyone have knowledge of someone who actually was sued for deficiency around here, or are these just threats?

and
Is there a time limit for a deficiency judgement in Florida? I think Georgia has a 6 month time limit.

IMO, It sure looks like J.O. is on the hook by Walton County Instrument Number 1040203 for a Deficiency Judgement.

 

[AAbsolute]

Two questions:

Does anyone have knowledge of someone who actually was sued for deficiency around here, or are these just threats?

and
Is there a time limit for a deficiency judgement in Florida? I think Georgia has a 6 month time limit.

IMO, it sure looks like JDS is liable under a Judgement by Walton County Instrument Number 1023752.

 

[AAbsolute]

Two questions:

Does anyone have knowledge of someone who actually was sued for deficiency around here, or are these just threats?

and
Is there a time limit for a deficiency judgement in Florida? I think Georgia has a 6 month time limit.

IMO, it sure looks like GF is liable under a Deficiency Judgement via Walton County Instrument Number 1026097