Gatlinburg Real Estate Blog

Some friends of friends recently made the decision to strategically default on the mortgages that they owed on two homes.  House prices in the area have dropped significantly from the bubble era peak levels that were reached 3 years ago.  Unfortunately, that is when these folks bought a couple these properties (they didn't use us!).  One was a primary residence and the other an investment property but they were both wildly overpriced when the couple purchased them.  Now that they are sharply underwater on both homes with mortgages well above the current post-bubble values, they have decided to simply walk away.  The couple has actually just purchased another home that is a well priced foreclosure to fix up and move into with the plan being to let the bank take back the other two properties while they walk away from the bad investment decision and the losses. What this couple doesn't quite realize is that banks have the right to pursue deficiency judgments a...

Some friends of friends recently made the decision to strategically default on the mortgages that they owed on two homes.  House prices in the area have dropped significantly from the bubble era peak levels that were reached 3 years ago.  Unfortunately, that is when these folks bought a couple these properties (they didn't use us!).  One was a primary residence and the other an investment property but they were both wildly overpriced when the couple purchased them.  Now that they are sharply underwater on both homes with mortgages well above the current post-bubble values, they have decided to simply walk away.  The couple has actually just purchased another home that is a well priced foreclosure to fix up and move into with the plan being to let the bank take back the other two properties while they walk away from the bad investment decision and the losses. What this couple doesn't quite realize is that banks have the right to pursue deficiency judgments...