Strategic defaulters opt to continue paying on second liens

 · Fortunately for Strategic Defaulters, California is a non-recourse state on their original loan in 1st position. BUT as many defaulters may be unaware. A lender can foreclose and obtain a judgment for the entire amount of the unpaid 2nd lien, refinanced amount, or HELOC amount.

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Strategic default is when a borrower decides to quit paying his or her mortgage-even if he can continue making the payments. Don’t do this until you get legal counsel. Why would a borrower choose "strategic default"? Strategic default is a good option to consider when the mortgage note balance is significantly higher than the value of.

Strategic defaulters tend to justify walking away from a severely underwater home as something permitted by the mortgage contract itself, which specifies the consequence of a breach. Namely, the lender will foreclose and take the home. However, when you signed the promissory note, this constituted a promise to pay.

But a second mortgage of $80k, $100k, even $250k or more is a totally different story, and such high balances obviously make bankruptcy a compelling option for consumers. The critical factor is that second liens can be stripped in Chapter 13 bankruptcy (i.e., converted to unsecured debts and included in the bankruptcy plan).

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This assessment lien is junior to both the $500,000 purchase-money first trust deed and the $30,000 line of credit. As you can see, the order of priority looks like this: $500,000 purchase-money first trust deed recorded first. $30,000 line of credit recorded second. $7,000 assessment lien recorded third.

RealtyTrac: May foreclosures inch up 2% Foreclosure activity rises 3% in October – CHICAGO (MarketWatch) – Foreclosure activity went up by 3% in October, compared with the month before, according to a report released Thursday by RealtyTrac. What’s more, foreclosure moratoriums put.

4 What Happens if I Don’t Pay My Second Mortgage?. By law, any property title lien can be foreclosed by its lienholder to satisfy its lien. A default, therefore, could allow a HELOC lender to.

 · The first option was to rehabilitate my loans, which requires borrowers in default to make voluntary, on-time payments based on income vs. expenses for nine out of 10 consecutive months. Once a borrower has successfully done so, the loans come out of default, wage garnishment is stopped, and borrowers are eligible for the same benefits available for the loan before default.

Guess how many bank CEOs made Glassdoor’s list of the highest rated CEOs? Gateway First Bank appoints head of community reinvestment, fair lending gateway First Bank has named Bruce Schultz as its vice president and community reinvestment act (cra) officer, a new position at the Bank. As part of the executive team, Schultz will be responsible for administering and monitoring all aspects of Gateway’s CRA and fair lending programs and ensure.Florida AG joins CFPB, FTC enforcement sweep On February 14, 2017, the Florida Attorney General’s Office issued a press release announcing that it had entered into three consent judgments and one settlement with four related loan service companies and operators.. The consent judgments and settlement resolve allegations that the companies engaged in acts and practices in violation of the Florida Deceptive and Unfair Trade Practices Act.