The Real Deal Miami

 Firms seek to capitalize on strategic defaults

June 14, 2010 09:45AM

The area is on pace for 70,000 foreclosure actions this year

People assume that banks are so busy with loan modifications that they
will not go after those who strategically default — that is, they
simply walk away from their mortgages. Some firms, like Deficiency
Judgment Recovery Network, are hired by lenders to collect the
deficiencies for them. Many such firms are also choosing to buy the
debt from the banks, hoping to profit on the back end by making the
former homeowner pay. In Florida, lenders have up to 20 years to pursue
these claims. “People are broke now, but they won’t be broke forever,”
said Mark Greene, owner and president of Short Sale Operations in North
Palm Beach. “It’s going to be a blood bath.” [Palm Beach Post]