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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (101102)	8/20/2009 9:05:46 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 116555

Not all homeowners are smart enough to know that. Sad but true. My source is a top atty for a nationwide escrow company with offices in Hawaii. That source told me flat out, "90% of short sales we see are including a deficiency note." In fact, I posted yesterday about a former mortgage broker that didn't understand why she still had her house(and unpayable debt) after going through BK. Hawaii is a non-recourse state IF the home is foreclosed through a non-judicial foreclosure process. A judicial foreclosure leaves the owner on the hook. Since almost all home note/mortgages are non-judicial here, I suggest that the owner immediately seek legal counsel to determine whether or not the note provides for a non-judicial foreclosure. If it does, then the next step would be to for the owner agree to an attempt to short sale the home. If, as is apparently standard, the lender tries to slide in a deficiency note in order to approve the short sale, the owner simply refuses to sign it, triggering the eventual foreclosure. That way the owner gets to stay in the home the maximum time possible. My guess is that we are doing about 20-25% of our residential sales now in the short sale category. That number is steadily on the rise.