[onewhippedpuppy]

Originally Posted by the

Your comment is confusing because it mixed 1st TD holders with 2nd TD holders. The first part of what you are saying is true, as applied to 1st TD holder, but your last sentence suggests you are talking about 2nds.

The first TD holder is usually going to come out ok. The second TD holder is going to pretty much lose the majority of their money, it's a pretty catastrophic event most of the time for the 2nd.

I was talking more about loans in general. I'm sure it's more common with the holders of a 2nd, because they just get screwed in forclosure. But, it also happens with 1st mortgages. Often times it's easier for the bank to allow a short sale and take a loss on paper than deal with forclosing on the property.