tag:blogger.com,1999:blog-3069007587339780976.post7518869943495853777..comments2021-08-22T08:18:09.459-07:00Comments on Distressed and Taxed: Strategic Default...Why its good for the economy?NicFisherLawhttp://www.blogger.com/profile/03742947604703145129noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3069007587339780976.post-55593618454436795942011-02-10T12:27:00.131-08:002011-02-10T12:27:00.131-08:00in regard to second mortgages, new case law as of ...in regard to second mortgages, new case law as of 2008 restored the second's right to pursue a law suit for a deficiency post foreclosure. The Second will likely sue, but it is not a judicial foreclosure, rather it is a suit on the note asking for enforcement and garnishment. there are tricks for dealing with seconds and I will try to post something more in regard to that situation in the near future.NicFisherLawhttps://www.blogger.com/profile/03742947604703145129noreply@blogger.comtag:blogger.com,1999:blog-3069007587339780976.post-40364662234768665982011-02-09T22:22:46.038-08:002011-02-09T22:22:46.038-08:00Great information, thanks!
Does your reply to Gre...Great information, thanks!<br /><br />Does your reply to Greg also apply to 2nd mortgages? I'm concerned that the junior loan would be more willing to pursue a judgment since they stand to recoup nothing from the sale.Mikehttps://www.blogger.com/profile/14048040302718856600noreply@blogger.comtag:blogger.com,1999:blog-3069007587339780976.post-40475122929401979022011-02-09T17:05:52.495-08:002011-02-09T17:05:52.495-08:00Very helpful insight, thank you...Very helpful insight, thank you...Anonymoushttps://www.blogger.com/profile/07411198083201698160noreply@blogger.comtag:blogger.com,1999:blog-3069007587339780976.post-17234561316250021762011-02-09T15:14:20.106-08:002011-02-09T15:14:20.106-08:00I believe the answer to your question is that of c...I believe the answer to your question is that of cost. You can look around, the estimated average cost of a judicial foreclosure is around $65K. That does not include the redemption period that is outstanding of 12 months in which the bank cannot sell the property which would preclude it from knowing what the actual deficiency is.<br /><br /> In addition to the cost, the judicial foreclosure creates a forum for the homeowner to bring up every issue of concern with the process. Explicitly, does the bank have actual ownership of the note? We don't see produce the note suits in WA because the nonjudicial foreclosure doesn't create a forum, it does not mean that there isn't potential problems. <br /><br />On top of the cost and potential defenses to foreclosure, is the fact that if the deficiency outstrips the outside assets, there is potential for a bankruptcy. The bank, after the foreclosure becomes an unsecured creditor not unlike a credit card and could get zeroed out. <br /><br />Finally, a well respected attorney in this area of practice has said that in most instances of judicial foreclosure in the state, the lender has been convinced by its attorney to go through the process and the only result is fee churning by that attorney. Most of the banking institutions are not opting for judicial because of cost, time, and potential for bad outcomes.NicFisherLawhttps://www.blogger.com/profile/03742947604703145129noreply@blogger.comtag:blogger.com,1999:blog-3069007587339780976.post-6295417668555708562011-02-09T12:35:09.559-08:002011-02-09T12:35:09.559-08:00I never see an article espousing strategic default...I never see an article espousing strategic default in WA adequately address the issue of additional assets becoming vulnerable to judicial deficiency judgment.<br /><br />In my instance, why would a lender opt for a non-judicial settlement when there are outside assets they could go after?Anonymoushttps://www.blogger.com/profile/07411198083201698160noreply@blogger.com