Harvey Collier, a mortgage broker in Fort Lauderdale, Florida, says he gets as many as 10 calls a month from people planning to default on their loans. The twist: They first want financing to buy another home. http://www.bloomberg.com/news/2010-...ast-mortgage-hurdles-from-fannie-freddie.html
fucking smarty pants..if i buy and price go up-i sell and pocket the money..if not-i default and try again? wtf? those fucks should be jailed desperation? fuck no...if you are desperate and default and your brain is bigger than teaspoon-then you should learn your lesson and fucking rent. cause this is what you are entitled.. alright? you are basically declare yourself bankrupt..yet you are looking for home that you won't mind to stay in? wow! one more time-rent i have no fucking sympathy to anybody,who is upside down on their mortgages..why? because of those fucks in link above..
It's mostly the fault of politicians... both Federal and State/Local. They make the terms of the loan as though there were "full-recourse", then administer them as though they were "non-recourse". And if the politicians were so greedy and so stupid to INSIST upon these terms, then why not take advantage? The worst part is that it's not the banks who end up bearing the lossess... they eventually get passed to the tax payer. What other outcome would any reasonable person expect?
"What other outcome would any reasonable person expect?" There you have it , put food on the table and somebody's going to eat it. The more the word gets around the more freeloaders show up.
Years ago we never had these kinds of mortgage problems. But then, a home loan required (a) 20% down payment (or PMI... Private Mortgage Insurance.. until the equity reached 20% of the loan), (b) mortgage loan couldn't exceed a certain percentage of income, and (c) the loans were underwritten to assess that there was a high probability that the loan would be repaid. And it was customary for the lender to retain the loan for a few years or more. If we go back to the prior standards and require that lenders hold the loans they make for 3 or 5 years, 99% of all this BS stops in a heart beat. Or, the loans could be made "non-recourse" with 30-50% down. And for those who don't have the down payment, PMI for the difference. (You can be sure the insurance company would underwrite the insurance risk for the loan.) Same effect. No more phony-balony.
or a buyer could get an FHA or VA loan with small downpayment and no PMI insurance was required... I knew a guy that ran up medical bills and owed on his FHA house, bought a VA house and defaulted on the FHA one.... later on he did 4 years but it was for an unrelated offense... he planned the default ahead of time, he bragged about it...
This is amazing. 2 years after the initial drop scams like this still going on. Why can't they go after their new home? I guess because Florida is a homestead state?