2006buyer_IHB
New member
scenario:
my friend bought in 2006 875k, 5% down, first loan 700k 5/1 io 5.875 resets 2011 citi (attempted to modify but have had no luck!), 2nd loan 121k 7.875 fixed provident (offered a discounted payoff, but no luck!). both purchase loans.
comps selling for 575k (talega)
Due to strong 2008 salary (which is down significantly this year) he qualified for a loan to buy a second house, he was told to write a letter saying current house was not working for us due to a noisy neighbor, and the need for a home office for job. In that letter to lender he stated his intention to rent current house, wait for the market to turn around then sell, and in the meantime carry both homes loans.
his questions are as follows:
1) anybody have experience executing the above scenario?
2) anybody have any insight on what it is really like living with f'd up credit?
3) is he at risk for any type of real estate fraud charges?
4) any insights to people or stories with non-recourse loans,where the banks have attempted to claim wrongdoing or judicial claims?
long story short, aside from the morality issues here, are there any compelling reasons not to do this?
my friend bought in 2006 875k, 5% down, first loan 700k 5/1 io 5.875 resets 2011 citi (attempted to modify but have had no luck!), 2nd loan 121k 7.875 fixed provident (offered a discounted payoff, but no luck!). both purchase loans.
comps selling for 575k (talega)
Due to strong 2008 salary (which is down significantly this year) he qualified for a loan to buy a second house, he was told to write a letter saying current house was not working for us due to a noisy neighbor, and the need for a home office for job. In that letter to lender he stated his intention to rent current house, wait for the market to turn around then sell, and in the meantime carry both homes loans.
his questions are as follows:
1) anybody have experience executing the above scenario?
2) anybody have any insight on what it is really like living with f'd up credit?
3) is he at risk for any type of real estate fraud charges?
4) any insights to people or stories with non-recourse loans,where the banks have attempted to claim wrongdoing or judicial claims?
long story short, aside from the morality issues here, are there any compelling reasons not to do this?