The Short Sale Scam: Most Going to Non-Recourse States that Bar Deficiency Judgments

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The Short Sale Scam: Most Going to Non-Recourse States that Bar Deficiency Judgments

The Short Sale Scam: Most Going to Non-Recourse States that Bar Deficiency Judgments

Another Day, Another Scam…Another Secret Bailout!

FDL’s David Dayen-

The more I look at this foreclosure fraud settlement report, and the reliance on short sales for the allegedly positive results, the angrier I get.

Let’s first understand what the numbers refer to, when the Office of Mortgage Settlement Oversight lists $8.67 billion in short sales. That number does not refer to the sale price of the home, but the difference between the sale price and the amount owed on the mortgage. This unpaid principal balance is then forgiven by the bank. According to the OMSO, 74,614 borrowers took advantage of a short sale that qualified under the settlement, with an average of around $116,200 per borrower. This includes first and second lien remaining balances, on both short sales or “deeds-in-lieu,” where the borrower deeds the residents to the servicer or investor instead of a foreclosure (basically the same thing, only the “buyer” is the servicer or investor, instead of an outside third party).

[FIRE DOG LAKE]

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2 Responses to “The Short Sale Scam: Most Going to Non-Recourse States that Bar Deficiency Judgments”

  1. Ken Hansen says:

    Great read, the mainstream slop pushers continue to pretend that a “settlement” somehow means banks “are making amends for law breaking” with some sort of penalty, like a short sale. Enter short sale scams.

  2. Charles Reed says:

    Government allow this because they are at the center of the storm as with Ginnie Mae who single handedly has enter into a Conspiracy and has foreclosed on all the service member & veterans on all VA loans that have been placed into the Ginnie Mae Mortgage Backed Securities, which is over 95% of VA loans.

    So now let allow homeowner who are unaware that they actually own the properties without a actual valid loan debt attached to the properties, however if the borrowers sale the properties that eliminates exposing the fraudulent submission of assignment by MERS, because the homeowner have on their own have sold these properties.

    Ask why did the Government Accounting Office (GAO) just release the VA loan study that said that the military active personnel where not even process for modification when having VA mortgage loans?

    Wake up!

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