Lenders Pursue Mortgage Payoffs Long After Homeowners Default

A second mortgage becomes a personal loan when a house gets foreclosed on. Personal debt usually has a 6 year time limitation to collect.

This can get really ugly for a lot of people if the banks start going after people. I live in Vegas and a lot of friends just bailed on there houses after cashing in HELOC's

 

Nope, definitely not true.

 

Your friends are criminals, then.

 

They're only doing what corporate crooks & government 'officials' have been doing the last few years.

Time to get even?

 

If they wanted to get even; just don't pay taxes. Doing what they did made every citizen suffer as a whole. We already pay 95c of every dollar to the gov already; we really dont need more shit coming down the drain.

 

These people belong in jail. I just hope the IRS does it's part and sends them a 1099 for the unpaid balance.

Someone else posted that "nothing has changed". He's right. Its the same crap going on.

Just one example:

Don't have enough for closing costs? That's OK, we'll just add them back into the sales price. I've seen 2 deals like this in the past week. This is in a declining market. What kind of lender would sign off on something like that after all we've been through?

Its used to be an "implict" garantee that the govt would back fannie and freddie. Well, now it's a real garantee.

 

this is about leadership, when the guys at the top get away with it, then the little guy is going to try to. all those guys in wall street need orange jumpsuits, then the little guys will fall in line. let all the little guys get away with what they can , then maybe the people at the top will realize what leadership is about

 

Yes! Until the lenders are held to account the average Joe should be allowed to walk away free and clear of all debt. Corporate America does it all the time. Gee, we over extended ourselves again. Guess we won't be paying those vendors, get ourselves a nice deal from Uncle Sugar and we're off and running again. Bullshit!

 

+1

 

I think the issue is that lines of credit, many second mortgages etc. don't get eliminated in a foreclosure. They are personal loans, not loans against the property.