Posted on 10/02/2011 11:41:53 AM PDT by Borough Park
By JESSICA SILVER-GREENBERG
LEHIGH ACRES, Fla.—Joseph Reilly lost his vacation home here last year when he was out of work and stopped paying his mortgage. The bank took the house and sold it. Mr. Reilly thought that was the end of it.
In June, he learned otherwise. A phone call informed him of a court judgment against him for $192,576.71.
It turned out that at a foreclosure sale, his former house fetched less than a quarter of what Mr. Reilly owed on it. His bank sued him for the rest.
The result was a foreclosure hangover that homeowners rarely anticipate but increasingly face: a "deficiency judgment."
(Excerpt) Read more at online.wsj.com ...
next 150 to the Atlantic
should be—next 150 miles to the Atlantic
You not only owe for the balance of the lease payments, you also owe for the residual value of the vehicle. (That's the value of the vehicle at the end of the lease term.)
I used to write automobile leasing software, I'm familiar with this topic.
So why are we then on the "hook" for bailing out banksters, fatcorps and Wall Street when go belly up due to bad decisions?
If you could be specific.
“”So why are we then on the “hook” for bailing out banksters, fatcorps and Wall Street when go belly up due to bad decisions?””
We (the taxpayers) are on the hook when Washington DC encourages banksters, fatcorps and Wall Street to make these zero % down payment mortgages. Fannie Mae, Freddie Mack, Federal Reserve, Congress, and the Presidency all encouraged this risky behavior.
If you refinanced your house and tapped it for all the equity it had, then defaulted on the mortgage note, you still had constructive receipt of funds, and it is not a simple matter to just walk away from that as many people are (falsely) led to believe.
So much for the “strategic default”.
Listen to Bush push home loans for the totally unqualified, just a few years before the American collapse.
http://www.youtube.com/watch?v=MqR15H0gNBU
“The house doesn’t sell for the price of the mortgage, the mortgagee is on the hook for the difference. Same with cars.
So why are we then on the “hook” for bailing out banksters, fatcorps and Wall Street when go belly up due to bad decisions?
If you could be specific.”
A mortgage requiring full repayment regardless of the eventual value of an encumbered property is a common legal private sector contract. Knowing this has stopped me from making some deals that I otherwise would have pursued. Acquiring non-recourse financing has allowed me to make one large deal in particular that I would have (and should have) dropped. (My partnership lost about $1 million on that one. The bank lost more, and wasn’t bailed out.) Success requires risk. Banking and investing are both risky ways to make or lose a lot of money.
Bailing out banks is a purely political action initiated by government. Such bailouts may or may not be a good idea, depending on many factors.
Regardless of whether banks should be bailed out, no Fat Cats, no Capitalism. No profits, no tax revenue. So we see the delicious irony today of people who receive tax benefits protesting the fact that corporations are profitable.
Have a great Freeping Sunday.
My wife always buys gap insurance on the cars she leases just in case. She drives well under the allotted mileage, buys out the lease at the end and comes away with a few thousand dollars in her pocket at the end.
Bull sh*t.
Have a good work week if ya still have a job.
“”Listen to Bush push home loans for the totally unqualified, just a few years before the American collapse.””
I well remember Bush breaking his arm from patting himself on the back when home ownership in the USA got to 65%.
The housing boom and bust was not a Democrat event nor a Republican event. It required both parties to water down the mortgage rules to allow anyone to borrow 100% or more on a mortgage.
In the same fashion illegal aliens is not a Republican or Democrat caused problem. Both parties have promoted illegal immigration.
Total cleaning of America’s political houses would be great. But the parties are too entrenched for it to happen.
Want a vacation home? Do what my folks did!
Save up some money for a few years and pay cash for five acres up in the mountains. Save for about five years and pay cash to put up a small house. Save for another couple years and pay cash for the five acres next to yours. Save for a couple more years and pay cash to add on to the house. A few more years of saving will give you cash to pay for another five acres.
Notice a pattern here? They didn’t expect to get everything the very moment they wanted it - and had to go slowly and surely for years - but they have no worries about making payments on what is basically a non-essential luxury.
Or you could just buy a foreclosed vacation house - looks like they’re going cheap ;-)
In all likelihood, banks with in house legal have calculated the cost of litigation and determined that the people who have foreclosed have other registered assets that substantially exceeds the cost of litigation. In other cases, the banks contract with a collection law firm that take a percentage (50%) of the collections.
Moral of the story, reduce your exposure by reducing your registered assets.
Yep...Watching these party groupies run around cheerleading for their favorite political corrupt insider, is nearly unbearable.
It's like watching masked wrestler perform their choreographed rehearsed moves for an audience of naive applauding fools.
After the show, the opponents go have a laugh and a beer with the proceeds.
People are too stupid to notice, they're all riding in back of the same limo.
I guess you need to ask the protesters on Wall St.
So why are we then on the "hook" for bailing out banksters, fatcorps and Wall Street when go belly up due to bad decisions?
You need to ask the protesters on Wall St.
Why, the question was directed at you.
Please explain further. Does she sell the car?
Hopefully you don't buy it through the dealer and use your own insurance agent instead. Buying *any* insurance (gap, credit life, a&h) via a car dealer is exponentially more expensive than obtaining your own insurance via an independent insurance agent.
By the way, in many states, buying the car at the end of the lease is a lose-lose situation for the consumer. Here in the People's Socialist RepubliK of Illannoyed, you pay sales tax on the full value of the vehicle at lease initiation, and sales tax on the resale value (not residual, RESALE VALUE) of the vehicle when you buy the car after lease end.
The pol's in this state have figured about every which way to eff the taxpayer here....
I believe most banks have paid back the TARP loans. But why we have to bail them out to begin with - I have no idea. Bush thought it was necessary and Obama and congress went along with it. Probably something to do with campaign contributions.
This guy got a $192,000 deficiency judgment on a VACATION home! It wasn’t even his primary residence. Must have been some kind of home. I have a hard time feeling sorry for him. There is no indication in the article about how much he put down or the original mortgage. He could have put down 50% for all we know. He must have been pretty successful to afford a vacation home like that, but to allow the foreclosure and deficiency judgment shows he isn’t very smart. And don’t most banks just sell their mortgages off anyway? I wonder if this particular bank was the original mortgage holder. A lot of homes are now selling at 50% of what they originally sold for. Good deals for those who can buy them.
How about all the fatcorps like AIG?
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