Lenders Finally Collecting Money From Foreclosure Victims Now That They Have Money??
Why kick a dead horse? –This was the mindset of lenders after foreclosing on homeowners around the bottom of the housing market in 2010. They have the ability to pursue yet they knew that at the time, the homeowners had no money. After homeowner’s walked away from their homes years ago, they are finding out that the lenders are now pursuing them after seeing the slight uptick in the economy. The dead horse is showing signs of life and they are here to extract what they can. Horrible? Yes and yet lenders will only work out what is in their best financial interest.
Please read the full article above by The Washington Post.
To summarize, a recent trend of lenders pursuing homeowners who was foreclosed on years back for the remaining balance are now on the rise. Homeowners, thinking they were done and over with the ordeal of their underwater homes are now getting notices of court actions against them for up to $100,000+. What is worse is, interest has been accruing (enough to lease a luxury car) the whole time and attorney fees are being tacked on at the end of it.
Evan Goitein, a Bethesda-based foreclosure attorney says: “There is very little to be gained from the bank’s perspective to be suing people for the money at this point,” Goitein said. “While deficiency judgments are not really a problem right now, I can see it being a big problem in the future. So seven years from now when my client has recovered from his foreclosure, he’s got a job again, he’s saved up enough money .?.?. [from the bank’s perspective], that would be a great time for the bank to try to sue them.”
Foreclosed homeowners forget that the lenders still have the right to pursue them and can save that right for years to come.
This is why we strongly recommend a short sale which is selling your house for less than what is owed and negotiating the difference. This way, you will be able to get on paper the verbiage: “settled for less than what was owed.” Legally, they will not be able to pursue you any more and you can live with the piece of mind that the house is officially off your hands.
Contact our expert short sale agents in Washington State. We will help you determine what the best option is for your situation.
Hope this helps