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By Richard Fernandez

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How the subprime mortgage collapse happened

October 12, 2008 - 3:18 am - by Richard Fernandez
3Case
2008-10-12 16:18:07

…a first mortgage is non-recourse to the borrower.

WRONG. However, the collectability of any deficiency judgment (the judgment against the borrower[s] after net value of the real property has been deducted from the total debt owed) is very suspect. The deficiency judgments will enter and then be sold at a discount to companies that will chase the debtors into bankruptcy. How that will work with mortgages to illegals, I don’t know.