Is the Mortgage Bankers Association about to walk away from its mortgage loan?
It seems unimaginable, but that may happen.
According to an article in the Wall Street Journal by James Hagerty, the Mortgage Bankers Association (MBA) has sold its new Washington, DC headquarters for $41.3 million. Thing is, they may owe their lender as much as $75 million of the original $79 million purchase price.
The question is, will they payoff said lender, PNC Financial Services Group?
In any real estate transaction, you can’t simply sell your property and cheat the bank out of its money. The bank, who has a “lien” on your property (this is the “mortgage”) won’t let the sale go through.
So, presumably, PNC knows about the pending sale (the article suggests this is true).
The situation puts the trade group, which represents the real-estate finance industry, in an awkward position. Its chief executive, John Courson, said in an interview late last year he believed “under-water” borrowers—those owing more on their mortgage than their home’s current market value—should keep paying their loans if they can afford to do so.
Defaults, he said, hurt neighborhoods by lowering property values. “What about the message they will send to their family and their kids and their friends?” Mr. Courson asked.
The real message? Those in glass houses shouldn’t throw stones.
Related posts:
- Will there be big changes in US mortgage loan interest tax deductions?
- Mortgage loan delinquencies rise but at lower rate, MA does well
- Points for trying: homeowner tries to get adjusted mortgage loan
- New FHA mortgage loan requirements revised, less stringent
- Will mortgage loan interest income tax deduction disappear?
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