recourse loans and foreclosure
The Ominous email is pasted below.
The uptake on this is that there are many collection groups who will be looking to purchase notes from lenders. Presumably they could file suit, get a quick default judgment and hound borrowers for years. We wonder if they plan to harass all the borrowers or only those with recourse loans.
A Recourse Loan Strategy Could be Hazardous to Economic Recovery
Unless the loan was the original loan on the borrowers residence, there is a good chance the loan is a recourse loan.
If junior loan is a recourse loan and the senior lender foreclosed on the property the owner of the junior loan may now be considered a “sold out junior” with a recourse loan.
In theory the owner of a sold out recourse loan could file a simple lawsuit, get a judgment, and then hound California borrowers for a decade, maybe more. This could be a serious drag on our California’s economy.
Collection groups tend to go after the low hanging fruit first:
1. people who had or have high paying jobs;
2. people with government jobs;
3. people with military jobs;
4. people with advanced degrees;
Once collection lawyer we know mentioned his group intends to wait a few years until the borrower’s financial situation has recovered and then ask the debtor to make the same payments they were making.
Conclusion, make sure you set up your strategy and back up plan before you begin a short sale or strategic default.
Here is the email –
“Hi,
Our company is in need of a good negotiating team/member.
1. We are looking to purchase mortgage notes on specific properties; these are jumbo loans; therefore, it will be easier for you to accomplish your task and with a lot less “red tape” since they are not regulated as hard as regular mortgages.
2. We are looking to purchase mortgage note which have already been written off by the lender, i.e. second mortgages on houses already foreclosed on by the first mortgage position.
If you are an experienced negotiator, have worked with banks before and would like to help us out with these transactions, please reply with your contact info and we’ll call as soon as we’re available.
Thanks in advance for your prompt response and we look forward to working together.”
Identity Withheld”
