Liberals… are red states getting what they deserved?
Or do you feel sorry for them ?… let me explain.
Link to what i’m talking about:
We all know that the financial crisis didn’t just affect Liberals, and didn’t just affect Conservatives… we were all affected. People lost their homes and investments everywhere….
Some people aren’t aware that even after foreclosure, giving it back to the bank, or short selling your home… you could still be on the hook for thousands of dollars of deficiency on your homes value.
Many people are finding themselves in the circumstance described in the article….. bought a home when economy was good, economy tanks, home prices dive, lost jobs, foreclosure….
So can the bank hit you up directly for these enormous sums of money, even though the short sale or forelosure couldn’t be done without the banks approval ?
The answer is….
Depends on where you live.
See …those red state voters often side with the bank, and they elect politicians who are corporate minded people, good ol’ supply side boys… they don’t usually side with the consumer. This is the reason that those are the states where the banks can wait up to five years…potentially increasing the loss to you on purpose, before they file a judgement against you.
So even though we were all affected by this…. did red state’s voters get what they deserve, for electing politicians who side with the banks before the people ?
I believe if you take out a loan, you should pay that loan off. You agreed to pay, you should pay.
However… I also feel that the responsiblity for this “investment” should not just be on the consumer in the event that the value of that investment plummets. The bank made the loan with the intention of making money, but that profit intention is no more guaranteed than the equitability of that investement made jointly with the consumer. Additionally, there should not be a legal instrument, in which the lender can legally delay filing a judgement, for the purpose of increasing their claim. It would appear that practice is yet another practice, where the bank is taking advantage of the consumer, by placing all of the potential future losses of that property investement on consumer.
What’s worse is that they are doing these things using money that isn’t even technically theirs. It’s OURS. Using Peter, to kill Paul.
This is something everyone should be aware of, whether you are conservative or liberal, if you are considering allowing your home to go into foreclosure. Check the laws in your state.
“Once they have a judgment, they can pursue you anywhere,” said Richard Zaretsky, a board-certified real estate attorney in West Palm Beach, Fla. “They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.”
In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.
Some states, such as California, are “non-recourse” and don’t allow deficiency judgments. But, even there, if the if the original loan was refinanced, some or all of it may be subject to claims.