Better credit now means a more significant hit after default?

This is amazing. So…the harder they come, the harder they fall? Better credit now means a more significant hit after default? Ouch. Reminds me of a story I heard this morning from David Stelzer, who reports dealing with a bank that holds both the first and the second on a short sale. The 2nd loan department was digging in and preventing the sale…which would have benefited the other department…in the same bank. The smartest people in the room have room for improvement.