[quote author="OCCOBRA" date=1255677639][quote author="toady9" date=1255670751]I know someone that bought a place a few years ago at the peak of the housing bubble with zero down, fully mortgaged. He makes about 200k a year salary. That place is now seriously under water, maybe 250k. Last time I spoke with him, he bought a new home also fully mortgaged, and is living there now. I asked what will happen to the old place, he shrugged and said it will probably foreclose.
Is it that easy? What are the downsides to foreclosing? Is ultimately the taxpayer bearing the burden of all these foreclosures since the banks are taking the hit and we're bailing out the banks?</blockquote>
Your buddy just committed fraud in my book and is a piece of crap. My opinion. His credit is screwed so whatever CC's he still has are probably charging him well over 20%. Ultimately he screwed you and me as the bank will take the hit and guess what our stupid government will keep bailing the banks out with our money. Jackoff's like this should be shot and hope would day he losses his cushy job a join us 16 million Americans who don't have a job, work part time because they cant find full time and the ones who have just plain given up. Then he can sit in his tent homeless and talk about what an asshole he was and repent...</blockquote>
I've said this for a long time. You can make 200k a year, have 500k in the bank and if you just stop paying your mortgage, let them foreclose on you, so what. The bank can't go into your savings and take money from there.
Or the short sale scam where the seller filters all the potential buyers from the bank and tells the bank that the only offer they have gotten was from a relative with a different name. Keep the home in your family and rip off the bank.
Lots of stuff like this going on and banks are too busy to really investigate.
And I hate to point to a particular group, but the Armenians and Koreas are leading the charge on this one.
