We need similar laws passed in every state.
Even on short sales banks make money. Between fees and interest banks make a fortune. If they do a mortgage for $250,000 and over the life of the loan expect back $600,000, when they sell for $220,000 they count that as a $350,000 loss.
Whereas they may have already been paid $100,000 in interest and fees and now that are getting that plus $220,000. In reality they made $70,000 not lost $350,000.
“We need similar laws passed in every state.”
Only in a Marxist dreamland. The foreclosure process is needed so a lender can attempt to recoup a bad loan.
Otherwise the lender has an unsecured loan. Lenders don’t want to make $300,000 unsecured loans. The real estate as collateral allows those loans to made in the first place.
Take the loan collateral away by making foreclosure impossible; and lenders won’t lend.
How about this concept? People pay their loans.
Isn’t it sad that they can sue for $ that they “expected to get”? Why then, when I go to the casino, and I “expect” to hit the jackpot and don’t, I can’t sue the casino?