Even for those who walked away from their mortgage obligations via a short sale with the bank accepting a payout less than the loan balance, the debtor is not disavowed from his or her obligation for the loan, as well as any other costs (i.e., taxes, homeowner's association fees, etc.) incurred by the bank before and after the sale.
"In a couple of years down the road, you will see a lot more of the collections on these debts," Greiner said.
According to the Federal Deposit Insurance Corp., mortgage recoveries rose 85%, to $1.5 billion last year, compared with 2008. Recoveries are up 187% from 2006.
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