If the bank refuses to do a short sale, it does make sense to walk away and force them to foreclose. You will still be liable for the balance but you don’t have to incur additional losses beyond what it could sell for.
You could not be more wrong. When you borrow money, it is not the bank's fault that your investment went south. Defaulting no a loan is dishonest (you signed a promise to pay and you took the money from the bank to buy the investment). Furthermore, while you will be personally liable for the remaining amount above what the bank sells the house for in a foreclosure, let's not kid anybody into thinking you will ever pay that amount. Otherwise, why would you have walked away in the first place if you had to pay them money any way?
not only that, the modification process is a scam.
with three months of payment they get their base attorney fees THEN get more attorney fees when they forclose.
There is no money in short sales.
They simply DO NOT WANT TO SET PRECIDENT by reducing principle (which they have already been paid).
The homes were always a useless trinket, the real money WAS AND IS THE SWAPPING..
Remember folks this is mortgage DEFAULT swaping!
That’s actually not true in some states. Legally the banks can’t go after you for the difference in “non-recourse” states.
...and if Granny is laying in the street and can't get up, it "makes sense" to take her purse before you leave, because you can, right?
For many folks, the price they name to sell themselves is distressingly low. That's not a conservative value.