The Market Ticker
Friday, January 29. 2010
Posted by Karl Denninger
Remember my repeated warnings about consulting with both a lawyer and CPA before defaulting on your debts - including mortgages - on purpose?
Well, here's why doing so is a good idea:
King is among a rising number of borrowers who are learning that they can be on the hook for years after losing their homes. Amid a crisis that stripped $6.4 trillion, or 28 percent, from the value of U.S. residential real estate since the 2006 peak, lenders are exercising their rights to pursue unpaid mortgage balances. To get their money, they can seize wages, tap bank accounts and put liens on other assets held by debtors.
In some cases they can seize wages, tap bank account and lay liens.
This is very situational and state-specific.
Oh, and don't think that a short sale protects you from this. It doesn't necessarily, and some banks are slithering snakes in their short sale agreements...
“Banks are being very careful to preserve their rights, either outright in the short sale agreement or by using vague language that leaves that door open,” Hillard said. About 90 percent of people who do a short sale think they are “off the hook.”
Again, let me reiterate:
GET COMPETENT LEGAL AND TAX ADVICE THAT YOU PAY FOR SEPARATELY FROM PEOPLE YOU INDEPENDENTLY SELECT BEFORE YOU CONSIDER ANY SORT OF CHANGE THAT ALLEGEDLY WILL "FREE" YOU FROM DEBT, IRRESPECTIVE OF HOW.
THE FINANCIAL INDUSTRY DOES NOT PLAY "FAIR." THEY HAVE ROBBED THE PEOPLE ON THE WAY UP AND IF THEY CAN GET THEIR CLAWS INTO YOU THEY WILL ROB YOU AGAIN ON THE WAY DOWN.
STATE LAW MAY OR MAY NOT PROTECT YOU AND YOU NEED TO UNDERSTAND EXACTLY WHAT THE CONSEQUENCES ARE OF ANY STEP YOU TAKE, EVEN WHAT LOOKS LIKE A "CLEAN" WAY OUT SUCH A SHORT SALE AGREEMENT!
PAY A COMPETENT LAWYER AND CPA!
