When John King stopped making payments on his home in Coral Gables, Florida, two years ago, he assumed the foreclosure ended his mortgage contract, he said. Last month, a Miami-Dade County court gave collectors permission to pursue him for $44,000 stemming from the default.
King is among a rising number of borrowers who are learning that they can be on the hook for years after losing their homes. Amid a crisis that stripped $6.4 trillion, or 28 percent, from the value of U.S. residential real estate since the 2006 peak, lenders are exercising their rights to pursue unpaid mortgage balances. To get their money, they can seize wages, tap bank accounts and put liens on other assets held by debtors.
“The big dogs get a bailout, and the little man gets no mercy,” said King, 39, referring to the U.S. government’s rescue of banks and other financial institutions.
While there are no statistics on the number of deficiency judgments approved by courts, the Federal Deposit Insurance Corp. tracks the amount banks collect after defaulted loans were written off.
These mortgage recoveries rose 48 percent to a record $1.01 billion in the first nine months of last year compared with the year-earlier period, according to the Washington-based regulator. Recoveries on defaulted home-equity loans almost doubled to $392 million, the FDIC data shows.
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Nobody rides for free.
ReplyDeleteNow all the pundits for walking away from that million dollar mortgage on your Sams club salary
will really be pissed.
How dare they come after me for something I owe !
That's absurd ! Goldman did it ! AIG did it !
BofA did it! Now it's the little man's turn - yeah !
Bullshit - what comes around goes around; in the end ( and it may take a hundred or so years) everything that was owed is paid; in full by EVERYBODY.
Get used to it as it is the way of things; when you make a commitment your word and your mark is your bond without that what if anything do you have?
The same people that would have you walk away from your home are also the same people that would be your pal and tell you if times are bad at home - " just leave the bitch" or "man - if your boss won't make that concession; just walk"
or " dude - if I fell on that orange peel - I'd Sue immediately".
Man up boys - now more than ever .
Well the "little guy" didn’t mind bragging about the profits he/she made in real estate in 04/05/06/07.
ReplyDeleteAs he or she looked down on the dumb ignorant renters they NOW look at these same ignorant and dumb renters and other tax paying money savers to bail them OUT because after all its their god given right too! Since banks were bailout!
I guess two wrong make a right???
However since we saved some cash and bought a few rundown apartments at auction for pennies on the dollar. Feel free to rent them from me but remember first, last and double security for you.
@6:14
ReplyDeleteMy policy with my renters (mostly subsidized renters) is as follows:
Rent is: Due on the first, late on the 5th, delinquent on the 10th, and you better go to the grocery store on the 11th and get you some boxes because your moving. Questions? Go back and read your lease. Yes, I gave you a copy and yes it says that. And, without a 30 day notice of "Intent to Vacate", plus you are being evicted for nonpayment of rent, you WILL be turned over to a collection agency for rent owed, and the good news for you is that after a small raft of harrasing phone calls, the collection agency will eventually quit, and your off the hook. Your bad news? Well, you will not rent another rental assisted apartment for 3 years since you were evicted for non-payment, and that sticks on your record that long. And yes, ALL government rental assistance records are NOW computer tied.
So Mr Renter:
Pay your rent on time. ( Anyway your probably only paying about half of it or less anyway and the RA is paying the rest)
Keep your apartment clean.
Keep non authorized freeloaders out of it.
No Drugs. (Bluelights at your door)
No Domestic Disturbances (Bluelights at your door)
And yes you signed and agreed to all of the above, saying you would not be late on your rent no cause disturbances especially those which cause bluelighting at your door (police).
Can't comply or don't know you signed off on that? No Problem--Get out.
To get their money, they can seize wages, tap bank accounts and put liens on other assets held by debtors.
ReplyDeleteGreen Shoots!! Green Shoots!! Green Shoots!!
LOL
6:08 you have the perfect personality profile to have been one of Hitler's henchmen. You're the type of scum who cannot be trusted and would fire on his own and help the bad guys rather than stand up for the little guy.
ReplyDeletePeople like you make me SICK.
6:54, you're the same as 6:08. I hope the economy brings you down to the same level that the people who are suffering are experiencing right now. I will laugh when I know you're getting a taste of your own medicine.
ReplyDelete@7:15---
ReplyDelete@7:15 Before you call me down, get you an apartment complex, invest deeply in it, and watch your books run red until you "learn" what you have to do. Your choices are:
A. Take a policy.
B. Get out of the business.
I would like to see you drop $2500.00 cash on a unit rehab this month only to see it trashed back to the stone age next month by a renter. New carpet, paint, appliances, and in 30days the meth lab ruined it all.
Try paying your bills when the rent collections are late. Somehow, your vendors don't understand.
I can see you have never been in your own business.
Don't you understand though? You're going to be in the same boat as your renters eventually when this country collapses. In the end, we are in this together.
ReplyDelete6:08, banks can make money out of thin air (read up on fractional reserve banking), "lend" it, and pocket the interest. The government inflates what's left away. Then when they fail, we bail them out.
ReplyDeleteUntil the little guy can do that, your point about even footing between banks and Joe Sixpack is laughable.
Many states allow a lender to sue a defaulting party for the balance when they sell that asset at market.
ReplyDeleteIf someone defaults on a loan of $250k and the bank only gets 90k for the property at short sale, the lender is liable for the other 160k.
Meanwhile, the bank sold the worthless mortgage paper to the federal government for par, 100 cents on the dollar. Paid in full, all the interest too.
Now, frankly, it should be only one of the above. Either the lender sells the property at short sale , sues the defaulter for the balance,
or they get the money from the government , since that's my money, my tax dollars.
Like an increasing number of Americans, I'm getting angry that the banks are profiting twice on each default in america.
The fact is, most people are ignorant of the fact that these banksters and politicians are psychopaths, and that they are nothing but pure evil. We are dealing with evil people and we are trying to play "fair" with them, yeah, that's really going to work, har har.
ReplyDelete9:58, the American people still have a way to hurt these banks. Take your money out of big banks and move them to a local bank.
ReplyDeleteIf you're in enough debt you can also move to another country that isn't strict with its laws regarding immigration and start a new life there. Sometimes the perils of debt are not worth the freaking idiotic American lifestyle we've become accustomed to.
12:38 you called it, you can't play fair in a system where the winners can continuously change the rules to their benefit and our detriment. We need to get beyond their rules and put a little fear into them.
ReplyDeleteYou can play "fair" !
ReplyDeleteDon't use their services !
Could anything be easier ?
These people that go around calling other people Hitler because they try to point out to people - hey ! don't borrow ! Live in the trailer until you've saved the money. Drive the clunker another year; take a night class'
grow a small garden etc. etc. etc.
No - it's all about me me me the little man who just has to swipe the plastic - gotta have that new SUV baby!
Fuck the banksters - don't use them !
They cannot man - up and do these simple things because they got no balls
4:33 you said it all amen
ReplyDeleteScrew those bloodsuckers. If the bank comes after you after a foreclosure, just file for bankruptcy. It wont hurt your credit anymore than a foreclosure already has. Dont be scared into being a slave to a bank.
ReplyDeleteAs soon as a court gives a bank permission to pursue a deficiency judgement over a foreclosed house, just file for bankruptcy. The big banks default ALL the time, its business. The RE group in NYC handed over 5 billion worth of apartment that are only worth 1.8 billion now. Do you really think that they are going to pay a DJ of over 3 billion dollars? I really doubt it.
ReplyDeleteLook at 5:21 working for the banks. You can't just file for bankruptcy if you have substantial 401k or pension plan savings. they take that.
ReplyDeleteYou will be left penniless and starving as per THE PLAN.
Hey everybody look
ReplyDeleteEverything ok
new GDP numbers just out & our economy grew at almost 6% best in over 6years
Everythink ok now for sure !
@4:33
ReplyDeleteYOU are the top poster on this thread. You got it ALL right in a short post!! WELL DONE!
Too many poor me's and name callers on here.
People are born with a free brain. All they need to do is activate it. It doesn't come with a CD. You have to do it on your own.
Look at 5:21 working for the banks. You can't just file for bankruptcy if you have substantial 401k or pension plan savings. they take that.
ReplyDeleteWrong.
Don't Do It! (Cashing Out 401ks)
Your 401k or IRA has near-absolute protection in a personal bankruptcy. As a qualified retirement plan it cannot be seized by creditors if you file a Chapter 7 or Chapter 13.
All retirement is exempt from BK including pensions. However, if your money is direct deposited in a bank, a lien can be levied against the account and it is up to you to prove the money comes from a pension. Collection companies have attached and cleaned out bank accounts of people who only have social security (remember the pus to get everyone on direct deposit) as income. They take the money out of the account, even though they know it is social security and you have to sue them. And where do you get the money to sue the collection company, oh yea you cant because they took your money!
ReplyDeleteBanksters do not care you have to pay 30-40% early termination tax on the distribution they just want their money.
Move to Texas and tell them to pound sand. They cannot attach your wages nor place a lien against any property. They can attach your bank account if they get a judgement, but the judgement has to be filed in Texas. You cannot take a judgement from another state and attach a bank account in Texas.
Move to Texas and tell them to pound sand.
ReplyDeleteAbsolutely. And here is a perfect example of exactly that...
Fleeing to Texas in Lexus
.
1:52, thanks for not making me say it. 6:57 just doesnt know the rules of the game.
ReplyDeleteEAT IT..
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