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Melissa Loughridge Savenko
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« City Council Shoots Down a Referendum on the Issue of Baseball on the Boulevard versus Shockoe Bottom - What I Really Think | Main | The New Shockoe Bottom Proposal - Some Questions »

September 24, 2013

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Melissa Loughridge Savenko

Trip, to answer your question, yes, the mortgage company is entitled to come after a home owner for the deficiency - the difference between what they are owed and what they recovered when they took back the house in foreclosure and subsequently sold it. The reality is in the period from 2007 to today, many banks CHOSE not to come after homeowners, knowing it was essentially a futile effort. But that doesn't change the fact that they could easily get a judgment.

So, you are correct, if the City forecloses on the parking debt, they would be credited with the value of that asset against the debt owed. But it still sounds like there are MILLIONS of dollars in additional debt that the City would be forgiving. My question is: WHY? Especially since the RMA owns additional valuable assets and generates net positive cash flow. In other words, unlike the poor homeowners in the mortgage crisis, the RMA actually has assets to go against. Why shouldn't the City recover everything that it is owed? Which of course includes the unpaid interest on the debt.

Trip Underhall

if they foreclose on the parking deck they have to credit the RMA with the fair value of the property they take. I don't know, but maybe that value covers the whole debt? You're in real estate and a lawyer, think about it - would a mortgage company be able to foreclose on a house and still come after the homeowner for the whole mortgage? Can a government take private property without just compensation?

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