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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (28014)	3/11/2005 5:22:14 AM
From: KM	Read Replies (1) \| Respond to of 306849

They can't even give it back to the bank in the first instance. If a deficiency is created and they don't meet the means test, off to 13 they go. How about this. The companies who buy chargeoffs and deficiency judgments for pennies on the dollar and make nice profits if they are able to collect - they're going to now have to pay more to the original lenders to acquire these assets because the assumption is no longer there that the debts could be completely discharged in chapter 7. Also, there will be an avalanche of chapter 7s filed right away and in the next 6 months before the bill takes effect and probably a lot of assets they are holding will be flushed. If there are any publicly traded companies in the collection agency/asset liquidation business, they probably can be shorted for profit right now.

To: Elroy Jetson who wrote (28014)	3/11/2005 8:44:36 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 306849

NS, I have not been paying attention to the bk bill so I did not know the details. Are you saying that it is going to negate non-recourse for non purchase money home mortgages? If true, that would be very interesting. As you probably know, in many places in the world, all home loans are recourse. I think that actually forced many upside down mortgagees to hang in there if at all possible, instead of just handing the deed back to the lender.

To: Elroy Jetson who wrote (28014)	3/12/2005 6:54:52 PM
From: Amy J	Respond to of 306849

Elroy and Thread, RE: "This is so classic. Now that all the sheep are in the pen, burdened down with huge mortgages, it's time to close the gate." So true. Why didn't they address the issue earlier, by tightening up the lending earlier? Regards, Amy J

To: Elroy Jetson who wrote (28014)	3/13/2005 4:36:17 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

If you give your home back to the bank, or they foreclose, when they sell your home for less than the mortgage amount they can seek the deficiency from the defaulting home owner. Now Chapter 7 bankruptcy will not be there to give those home owners an easy out. That could be an interesting twist this next downturn that makes many slaves to their mortgages in bubble markets forever. Can you imagine that working stiff thinking today he has nothing to lose with an $800k mortgage taken out today zero down on the LA ranch still being on the hook for $400K after a 50% plunge in few years? This could have tremendous long term consequences for consumer confidence and spending habits in many coastal bubble markets.