GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Biggest Defaulters on Mortgages Are the Rich

kane · 07-12-2010, 01:49 PM

I had read a while back that 1 in every 10 homes currently being foreclosed on were seconds homes or were purchased with the intent of it being an income property.

A lot of people thought they were going to make some easy money with the ballooning housing market and got found out it isn't that easy.

There was also a story about 6 months ago where people in California were doing something called buy and bail. The example they gave was a woman who owned a house that she bought for 400K in Stockton. The house was now worth about 225K, but when her variable rate mortgage unlocked her house payments were going to double in size. She filed papers saying she was going to rent this house for at least 80% of the mortgage amount then bought a new house before she was in default with the old one. This new house was almost the same, but cost her half as much. Once the deal for the new house was done she walked away from the other one and let them take it.

07-12-2010, 01:49 PM
kane Too lazy to set a custom title Join Date: Aug 2001 Location: portland, OR Posts: 20,684	I had read a while back that 1 in every 10 homes currently being foreclosed on were seconds homes or were purchased with the intent of it being an income property. A lot of people thought they were going to make some easy money with the ballooning housing market and got found out it isn't that easy. There was also a story about 6 months ago where people in California were doing something called buy and bail. The example they gave was a woman who owned a house that she bought for 400K in Stockton. The house was now worth about 225K, but when her variable rate mortgage unlocked her house payments were going to double in size. She filed papers saying she was going to rent this house for at least 80% of the mortgage amount then bought a new house before she was in default with the old one. This new house was almost the same, but cost her half as much. Once the deal for the new house was done she walked away from the other one and let them take it.