Best I can figure is these people weren’t REALLY paying mortgages. They were ‘renting to own’ from this guy who built the houses. Early on, what they were paying him was probably more than the payments, and he was profiting on the difference.
I’d say the properties were in his name, and he levered up by cashing in on equity multiple times over the years, like the rest of the idiots, and as soon as prices fell, he was hopelessly underwater on the properties. He gets into a little trouble elsewhere, and he can no longer make the payments, no matter what the tenants do.
....Just my guess, and take that for what it’s worth.
It is going to court...did you read the article? now, these are not fanny mae or freddie mac loans...payments made on time but to the wrong party is what I understand. This is not the first time some shady deals have happened in this area of MO