Years after loan default, homeowners may still owe - Sacramento Bee

Don't let this happen to you:  The downturn forces you to do a short sale, relieving your first mortgage debt.  But the second mortgage isn't officially forgiven, and later comes back to bite you.  Quoting from the Sacramento Bee,

"In many short sales, experienced real estate agents or attorneys can negotiate away debt obligations for the second-lien loan. But many inexperienced borrowers don't know that, and sign final-hour agreements giving lenders the right to pursue them later."

If you're involved in a distress sale from either side of the transaction, an experienced advisor is crucial. - David

Long commutes make risky borrowers, study says

How about those folks who buy a home far from their place of employment?  Could that be a predictor of their likelihood to repay their mortgages?

Long commutes make risky borrowers, study says

I think it could, because it may be an indication that they don't really want to live or work where they do, but are driven to do so by financial need.  Think "Riverside" or "Lancaster," and the concept makes more and more sense. - David

Will walking away from a mortgage go mainstream? - LA Times

As earlier reported, it's not my intention to endorse what are popularly being called "strategic defaults." Roger Lowenstein, a former editor of the Wall Street Journal's "Heard on the Street" column, writes about the topic at this link:

Will walking away from a mortgage go mainstream?

Certainly walking away from properties that are underwater on their mortgages will have a seriously detrimental effect on one's credit.  But the concept may deserve thought when a property is so far underwater as not to stand a reasonable chance of recovering that difference in value within a meaningful time horizon.  Food for careful thought; ground that should be treaded lightly. - David

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Re-defaults declining. Maybe we're starting to get it right?? - WSJ

Re-defauls on modified loans have been enormous, but are seeing some improvement. - David

http://online.wsj.com/article/SB126144913572001111.html