Posted by Rich-CA on May 09, 2008 at 11:49:29:
In Reply to: Re: deficiency judgments in Virginia posted by Stanley on May 08, 2008 at 17:44:49:
or maybe more if anything else occurs while I type.
(1) In states where they have to go to court to foreclose, they will very likely get a deficiency judgment since they are already there. In states where they have a trustee sale, they will not likely go through the expense of doing this.
(2) This is an INVESTORS forum, so it is not unreasonable to expect a response from the point of view of "how much am I going to make on my personal money that I have invested". Its true in RE as well as gold, stocks, bonds, what have you. Expect that an investors forum will take the side of, well, investors. Its not a consumer forum. In fact there is a section on investing in Notes, which are backed by mortgages.
(3) See, I told you there'd be more. GM said they'd meet their obligations, but it was stupid for them to say that since they have pension obligations that exceed the liquidated worth of their entire company. Couple that with shrinking margins per vehicle sold, and I am surprised they did not do what the steel industry did: go bankrupt, scrape off the pensions to the Federal program, which caps payment to like $47k per year and not some huge percentage of the final salary, and eliminated health care coverage in favor of Medicare. If they could make bigger "profits" they could fund these obligations, but that is not the direction the market is going. GM may end up being the next AMC, and we all know what their pension is worth now: zero.
(4) It was more like the mortgage brokers - those paid salesmen of loan products, who kept saying you could always refi out. People bought into it not because they were deceived, but because it was what they wanted to hear. After 3 decades in the RE market, I can safely say that any sales person's claims about the future are a load of fertilizer.
SUGGESTION: have you tried a workout with the lender? I believe the law requires they try. If its not a "teaser" rate and just an ARM reset, perhaps you can get them to forego the rate change to keep the property out of bankruptcy. Should give you some room to work if they agree.