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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Follow-up On This Month's Article Posted by frankCA on December 23, 2003 at 8:03 AM In Reply to: Re: Follow-up On This Month's Article posted by Gary Chung on December 19, 2003 at 11:07 PM : : : Ward: : : : Nice article this month. I need a clarification. If I understand it right, in general, a loan used to 'purchase' a house is exempt (unless it's backed by FHA/VA) from any future deficiency judgments. However, if I refinance to take advantage of today's low rates, then the new loan is considered a 'hard money' loan (as defined in your article) and therefore subject to possible future deficiency judgment but only if the lender/beneficiary chooses to foreclosure judicially. Have I got that right? I ask because your article doesn't directly reference a new refinance loan. : : : I can see this as a point that I can use in talking with someone in foreclosure. That is, if they choose to let their home go to foreclosure instead of selling to an investor...like me, I can inform them that their troubles may not be over after the sale and that the lender may still come after them for the deficiency. : : : Thanks, : : : Gary : : =========================== : : Hey Gary! : : Since most people that you will be contacting are already in foreclosure, non-judicial foreclosure that is, your claim to fame would be misleading unless their lender had initiated a judicial, thru-the-court action. : : Good try, tho. You're always thinking and I like that! : : Rick : The Rick-ster: : Per the article, the junior note that is wiped off the title can still sue for the deficiency if they don't received enough overbid on the senior note to cover what they are owed. So I can still make the point to the seller that a junior note holder can still come after them even after the sale. However, I recognize that in the So. Calif. market, most junior noteholders are getting all their money back. : Good to hear from you! : Gary WOW! Where have I been? The last paragraph in the December 2003 Articles states "So the only real problem in this whole area seems to be HUD's apparent willingness to pursue deficiency actions against their FHA/VA borrowers if HUD's repo sale generates less than what they're owed." Does HUD just file an AJ or do they take collection action? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : Ward: : : : : Nice article this month. I need a clarification. If I understand it right, in general, a loan used to 'purchase' a house is exempt (unless it's backed by FHA/VA) from any future deficiency judgments. However, if I refinance to take advantage of today's low rates, then the new loan is considered a 'hard money' loan (as defined in your article) and therefore subject to possible future deficiency judgment but only if the lender/beneficiary chooses to foreclosure judicially. Have I got that right? I ask because your article doesn't directly reference a new refinance loan. : : : : I can see this as a point that I can use in talking with someone in foreclosure. That is, if they choose to let their home go to foreclosure instead of selling to an investor...like me, I can inform them that their troubles may not be over after the sale and that the lender may still come after them for the deficiency. : : : : Thanks, : : : : Gary : : : =========================== : : : Hey Gary! : : : Since most people that you will be contacting are already in foreclosure, non-judicial foreclosure that is, your claim to fame would be misleading unless their lender had initiated a judicial, thru-the-court action. : : : Good try, tho. You're always thinking and I like that! : : : Rick : : The Rick-ster: : : Per the article, the junior note that is wiped off the title can still sue for the deficiency if they don't received enough overbid on the senior note to cover what they are owed. So I can still make the point to the seller that a junior note holder can still come after them even after the sale. However, I recognize that in the So. Calif. market, most junior noteholders are getting all their money back. : : Good to hear from you! : : Gary : WOW! Where have I been? The last paragraph in the December 2003 Articles states "So the only real problem in this whole area seems to be HUD's apparent willingness to pursue : deficiency actions against their FHA/VA borrowers if HUD's repo sale generates less than what : they're owed." Does HUD just file an AJ or do they take collection action? Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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