Quote:
Originally Posted by xenigo
Their perspective is that if THEY can't own the property, then YOU can't own the property either.
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When I first found out that people did this, I felt the same as you. However, in some situations, people put money into the house from their pockets or via a HELOC. When the home goes under, they are often faced with a 1099 to the IRS and/or state tax board for the difference between what?s owed and the selling price. Fortunately, some states have gotten rid of that practice during the meltdown.
Overall, if the system is going to make you continue to pay after a foreclosure, then take anything that?s not nailed down. If it?s nailed down get a hammer.