All Forum Posts by: William D.

Start with 26 U.S.C. Sec. 6325(b)(2)(B) and Treasury Publication 783.

This is why I love this site. No where else can you get insight like this. I thoroughly enjoyed your posts this morning on this topic. Incredible insight.

Daniel, I agree with you, too. If you strategically default and the otherside has the ability to recover 100% of what they are owed plus fees and costs then it is financially imprudent.

I don't think he is a deadbeat at all. Businesses do it all the time in the commercial world. Why cant an individual use the same rationale. If this was a loan from a family member, then yes, he is a sleaze ball. The lender or ultimate investor is equally as culpable for making a bad investment and should have done better underwriting.

Jeff,

First off, I wish you the best of luck. I moved home after college and lived ("mooched" as some posters call it) during law school. Just a couple of general points which helped my relationship with my parents.

First and foremost, be respectful regarding bringing women home. Dont put your parents in the awkward spot of seeing a friend from the bar leave in the a.m. (my brother took the opposite approach and found himself kicked out after 60 days)

Do 100% of the yardwork, whether it be mowing the lawn or shoveling the snow. Get it done before it is even a concern of your parents.

Buy Sunday dinner once a month. Either cook some pasta and meatballs or buy your dad a steak. This meal once a month makes them feel like you are at least aware of the sacrifice they are making.

Good luck.

Joel,

I cant add value regarding (2) or (3) but just had recent experience with (1). If the property is owned by an LLC or Corp then you most likely cant prosecute the eviction in your individual capacity. However, so long as there is a nexus between your property management company and the entity owning the real estate they can probably prosecute on your behalf (or on behalf of the entity owning the property). Thus, the attorney can bring the action in the name of the PM and you are out of the picture except for settlement authority. Just be available by cell phone. Most Judges are OK with this so long as it is a vanilla eviction.

Jake, it's all part of Harbaugh's plan to secure Andrew Luck -- patience.

As for Philly, someone has to play nickel corner, good luck convincing Asante. Also, you do realize you need linebackers? and c'mon VY as QB? Philly has holes. As a Giants fan I am much more afraid of Dallas this year. Whenever Big D is under the radar it means trouble.

You may want to talk to your tax planner and see if you can take advantage of I.R.C. Sec. 1041 given the pending divorce. Without more info it's difficult to speculate.

Some good responses. Patty, I agree with you that it is not cost effective to spend 5K to try to collect 5K when you dont have 100% certainty you will collect. I am assuming that this is not the case here.

First off, he is not BK protected. He can file a Ch. 7 but it may be difficult for him to qualify based on the means test. Further, he doesnt have enough exemptions to exempt all the equity. The fact that a deficiency if easily discharged in a Ch.7 is one of the reaons deficiencies are not commonly collected. This is inapplicable in this situation.

Secondly, the cost of collection (notably the attorneys' fees) would most likely be chargable to the borrower. So even the situation where it costs you 5K to collect a debt of 5K, if you can collect your 5K cost of collection + the 5K debt then you actually can collect the full 10K. So even a small debt with a high probability of success is worth pursing.

If I were the attorney for the bank and those additional assets appeared on a skip trace I would absolutely recommend to my client to pursue a deficiency judgment. I would then get a prejudgment remedy attachment and lien the encumbrance free units.

In addition to the the unpaid principal balance I would try to collect post-judgment interest, attorney's fees and costs. Your friend "Joe" should strongly consider the consequences before strategically defaulting.