Posted on 05/19/2008 4:49:38 PM PDT by lainie
I don’t know how this is written but I could see a scenario where someone who’s home has gone down considerably in value would be motivated to stop paying their mortgage. It can take 18 months to 3 years before they actually take your house.
Joe Homeowners house has dropped 20-25% in value, he stops paying, bank starts foreclosure proceedings after 3 months, Joe Homeowner calls bank and negotiates a new sales price for 30% less. Joe Homeowner makes tens of thousands of dollars, plus reduces his mortgage, the only thing at risk is credit rating, which can be recovered. When house goes back up, that is now all equity to Mr. Homeowner.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.