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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (442599)	12/25/2008 5:54:22 PM
From: bentway	Read Replies (1) \| Respond to of 1577025

Walkaways highest in 'non-recourse' states By The Associated Press Thursday, December 18, 2008 Mortgage law experts say the incentive to walk away from a home loan is highest in states that have anti-deficiency statutes, which prohibit lenders from suing borrowers for additional funds after foreclosure. "These anti-deficiency laws make a huge impact on foreclosure rates because they are basically 'get out of jail free' cards," said Todd Zywicki, a law professor at George Mason University and senior scholar with the Mercatus Center think tank who's writing a book on consumer bankruptcy and consumer credit. This handful of non-recourse mortgage states includes the high-foreclosure states of California and Arizona, which not coincidentally also are leaders in the numbers of mortgage walkaways. The full list: Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah and Washington. Donald Lampe, a Charlotte, N.C.-based mortgage lending attorney with Womble Carlyle Sandridge & Rice, said the statutes generally prohibit or limit a lender's ability to go after the borrower's assets to satisfy the unpaid mortgage debt. "There are some folks suggesting that state anti-deficiency laws should be expanded around the country as a response to the "mortgage meltdown," Lampe said. However, he noted, "It is difficult to see how these laws could be made to apply to loans already on the books." sfgate.com