Who Has Already Foreclosed???
Posted 13 October 2008 - 04:40 PM
I have some questions regarding foreclosing a home on which one is upside-down. Basically here's the scenario:
The person owns a home in California with 3 liens:
1) Wamu loan at 390k
2) Wamu HELOC at 60k (this was a purchase HELOC so it's considered non-recourse)
3) BofA Heloc at 250k (this is a recourse loan, added 1.5 years after purchasing property)
That's about 700k in liens. The property is worth about 450k, so it is upside-down 250k. There's no reason for this person to keep this property, and they are about to let it go. My question is do you guys think that BofA will come after this person for that 250k, because obviously after the home is sold on the market or via auction, there will be nothing left for BofA. I know that technically they CAN come after the client because it's a recourse loan, but every bank is taking hits left and right these days, so my opinion is that they won't come after this person....they will just chalk up the loss. WHAT DO YOU GUYS THINK? Share personal experiences if possible. I know many people who have foreclosed in CA and haven't been notified by a lender that they are going to garnish wages, etc.
If you have foreclosed and had multiple liens, can you tell me if the 2nd (or 3rd) lienholder tried to sue you and come after the money if they were short on their end after the sale? Also, please state if that lien was a HELOC or not.
Posted 13 October 2008 - 08:46 PM
Posted 13 October 2008 - 10:34 PM
Posted 10 November 2008 - 06:57 PM
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