Saw three couples this month who needed to file bankruptcy, because they were getting sued–garnished in one case–by the second mortgage after a short sale.
It was surprising that they were surprised. At the peak of the crisis, for or five years ago, second mortgages would take what they could get at a short sale and let the rest of it go. But they don’t often do that anymore. (At least not without intense negotiation. I’ve seen it once in the last year.)
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