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matroskin

Bofa Ramping Up Foreclosures

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UK banks dont need to, becuase the law here states you are still liable for any difference should the bank reposses and flog your house cheap unless you go bankrupt but the Govt & Banks isnt letting that happen becuase we dont have enough social housing stock in the first place to house the repossed.

I think you are largely correct except that noises have already been made about "council house is not for life" etc. Let's see if this is followed through and turnover in council waiting lists accelerates.

BoA has made a decision to offload to raise much needed capital.

And others, including at least some UK-based banks will need to make this decision soon. Just my gut feeling ;)

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Seems that US RE firesales are about to start in earnest

Can't see other banks still "extending and pretending" while BofA disposes of foreclosures left,right and center :P

..has anyone looked at the original loans and the arithmetic ...?..after all it's not rocket science...lessons learned and anything else that turns up.... :rolleyes:

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UK banks dont need to, becuase the law here states you are still liable for any difference should the bank reposses and flog your house cheap unless you go bankrupt but the Govt & Banks isnt letting that happen becuase we dont have enough social housing stock in the first place to house the repossed.

In the US people can walk away but the US banks have been tied up with a case where a mortgage has been sliced & diced and sold on and in US law you need all the title owners of the mortgage in court to seek a repossesion, if you dont have everyone in court then you cant seek a repossesion. Once that has been sorted only then can the banks start offloading their repossesions so it seems like a decision has been made on this or the BoA has made a decision to offload to raise much needed capital.

Either way becuase of the difference in law over liability of outstanding debts the US financial system is worse off than the UK on this point imo.

In the US there is a possibility you can be held liable for any difference should the bank repossess and flog your house cheap. It depends on the law in the state where the property is located, and the language used in your mortgage contract. If you are held liable, there would be a judgment against you that the creditor would try to enforce by placing a lien or taking your bank accounts or other property if you have any. If the creditor decides to not go after you for the remaining deficit, possibly because you have no income or other assets, the creditor could "gift" you the deficit, and write it off on their books as a loss. If they do that they will report that amount to the IRS as a gift given to you, and send you a duplicate form of the one they sent to the government. Then you will owe tax on that "gift" to the Internal Revenue Service. Taxes owed to the IRS cannot be discharged in bankruptcy.

After all, you were lent the money, and that amount of the money was not paid back, so it is a gift to you. Makes sense, eh? Now you know a little more about why the mortgage mess on this side of the pond is such a mess.

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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