You are bringing up great points but, I want to clarify that it is NOT a loophole that allows an entity to sue. The right to sue is just that, a right. What has happened in our market here in AZ is a shame. You bring up the best point. Legal Representation is key. There are very clear legal arguments that can be made to respond to these suits. I applaud you referring them to that legal advice. I can’t tell you how often we hear about these cases post default judgement because the homeowner thought there was some “loophole” There are NO loopholes. There are defenses and law firms like ours is winning these cases. They don’t have to become a serial victim! Great work. Keep it up.

I have over 100 posts so far on this blog – most in a video format. It is rare that I post rant-style articles, but let’s face it, this is not such a nice time in real estate.

The main reason for this post is to make people aware that his sort of action is happening. It is not just my friend. There is a growing concern in Arizona that distressed property owners are not protected under the anti-deficiency statutes and actions like this taken by the FDIC indicate that they are vulnerable to deficiency judgements. This is especially true of short sales – without a trustee sale recorded, the homeowner must depend on case law, not specific legislation to protect themselves if the lender does not waive their right to deficiency action in the short sale approval. If you are vulnerable to these actions, you must take steps to protect yourself.

I really wish I could just post nice stuff, but sometimes these things just need to be said. I hope you will check out some of my other posts that are of a much brighter nature.

Thanks again for your comments…

I looked at this post primarily to see what you were doing in terms of using video on your blog. Very nice presentation, by the way. You are articulate and in all ways great on camera.

But seeing it incited a couple of reactions in me, which I thought I’d share. First, you might want to consider choosing subjects that are the things that you can appreciate, want to celebrate, or see more of. The subject of this post was essentially a complaint, and what’s more, a complaint without even a suggestion of a solution. The message I took away was, wow this is really unfair and isn’t it terrible that the FDIC is doing this to “innocent” people like my friend. What a downer. I think I’ll move on.

You may be 100% right about the merits of this case, but hey, complaining is probably not the face you want to present to clients and prospects, even if you follow it with a logical call to action. Surely there is another subject that excites you rather than infuriates you, and as a result would be much more appealing to your viewers.

Ditto on the subject of corporate greed and AIG’s “unfair” bonuses. I’ll give you a quote from Timothy Ferriss, the author of “The Four Hour Work Week.” He said, “Learning to ignore things is one of the great paths to inner peace.” There isn’t anything you can do about AIG, and oh by the way, you may not have the full story on why they are taking their bonuses, but in any case why not ignore it and focus on something else that makes you feel better?

Scary times ahead…