Quote:
Originally Posted by spunkmaster
Most Banks have already written off the bad loans so anything they can get from the house sale/auction is gravy even if it's below the balance due.
I've been told that the dead beats are also trashing their houses because they were scum bags that shouldn't have been approved for the loan anyway. They just stop paying and live for a year rent free until the Bank boards the house up and by then the house is trashed.
These dead beat loans started when Clinton was President and continued under Bush and now we have about a million home owners who should be renting !
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Most of these people are not dead beats in my experience. Most were preyed upon by predatory lenders with bad loans. Even when the people had good credit and income the lenders tried to give them sub prime loans. When the people were exited, and uneducated about the process it worked.
A few lenders tried this with my girlfriend. 0% loans where she would never own the house, introductory 1% loans that after a year keep going up in interest. I was able to find her a good fixed loan otherwise whe would be packing right now too. One of those lenders was her friends boyfriend!
Other people got greedy with refinances, and got caught up in the housing bubble.
Here in Stockton Ca. we have one of the highest forclosure rates in the country.