I Really Don't Care What Paul Jackson Says
A new article over at Credit Slips comments on Paul Jackson's chest-thumpings over an Alabama trial court decision on a chain of title issue. I'll let you read about it over there. I'm posting here because I couldn't get my links to work over there. Here it is, with links:
Jackson is a long way from an objective observer. In law practice, he represented banks and servicing shops. He thinks that second mortgages are the chief problem with short sales, not the endless feedback loops within the first position lender and its servicers. He's a leading proponent of the theory that strategic defaulters are going off on shopping sprees (No comment on whether such opinions are why he remains ABD in the consumer behavior doctoral program at USC.). If you have Yves Smith and everybody else, including Janet Tavakoli on one side and Paul Jackson on the other, I'm backing Yves.On the substantive side, I think you're exactly right. I practice in two non-judicial foreclosure states, and once that sale closes, you don't get it unwound. The debtor came to the game too late. In the cases where the debtor gets to court before the sale, the banks are losing.