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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Gemlaoshi who wrote (38360)	8/10/2005 7:56:04 PM
From: russwinter	Read Replies (3) \| Respond to of 110194

When I bought my apartment buildings in the mid-90's, there really was no lending market at all for non-recourse commerical loans to independent apartment or rental operators. I would say that was the case the case when I sold in 2002 as well. So unless something has really changed, I just can't imagine lenders giving non-recourse loans to amateur landlords who have been in business, "for a year and a half". I wonder what these people are disclosing on their apps, in regards to owner occupied, etc. I have to believe there is a bunch of borrower fraud out there in that front, that will also come home to roost.

To: Gemlaoshi who wrote (38360)	8/10/2005 9:08:53 PM
From: loantech	Respond to of 110194

Actually VA's have recourse I think.(think don't know for sure.... but.)

To: Gemlaoshi who wrote (38360)	8/10/2005 10:36:18 PM
From: James M. Belin	Respond to of 110194

Gemlaoshi, Thank you for your detailed comments. I do have a legal background, but I am not an expert on real estate law. The law with respect to deficiency judgments does vary state by state. In Arizona the law is that for one's primary residence, a creditor cannot get a deficiency judgment. However, I am unsure whether the same protection applies to "investment" homes. The Arizona statutes do not address this issue. I am sure that there is some case law on the subject. Here is another interesting wrinkle. Although a deficiency judgment in Arizona is not available to a creditor on the default of a mortgage, I am not sure whether the same protection applies to a default on a home equity loan or a home equity line of credit. And we know that tons of those types of loans have been originated. Jim