We are seeing more and more of these signs but reports indicate that there are more foreclosures in those states that have anti-deficiency statutes, which prohibit lenders from suing borrowers for additional funds after foreclosure.The highest non-recourse States are: Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah and Washington.
The incentive to walk-away from a home mortgage is greater in these States as you can NOT go after the delinquent borrower's assets. It is impossible to even accept that millions of people taking out mortgages got fooled or worse. This is all about irresponsible and greedy lenders and irresponsible borrowers.
Candidate Commissioner District 4, Rene Varela, talked about this during the election and how it will affect the City of Lake Worth in 2009. Months ago, Sen. John McCain attacked the Federal Reserve for bailing out failed financial institutions and said that we should "get out of the business of bailouts." These bailouts had no strings. Talk about irresponsible.
