There is a model home in Otay Ranch in Chula Vista that had this happen to it.The buyers bought it from the builder and it was loaded with all the amenities(Plasma TV,ref,wash/dryer,furniture, chandeliers,ceiling fans,etc….easily 50,000 + The buyers used 100 % financing (gee what a surprise…..) and NEVER made 1 payment.The lender took the property back 6 months later only to find that it too had been completely stripped.The lender cannot do anything since the former owners have left the country and took everything(except the mtg) with them.
I also anticipate seeing more stories like these. Especially since builders are doing everything they can(short of slashing prices) to unload their inventory, and 100 % financing “liar loans ” are still available to people who have little or no ability/discipline to actually honor their comittments.
On another note, we just had a client come in who recently retired from The Navy(27 years) and has NO mortgage.They paid it off some years back and their property tax is only 400.00 per year(bought in mid 80’s).They never did a cash out refi,or borrowed against it……I know that’s ssooooooo old fashioned and lame 🙂 They have no debt and can now travel or do anything they want.
Hearing this fires me up and gives me faith that there are still some responsible folks out there, and that my wife and I are doing the right thing.
Our house will be paid off in less than 5 years and that my friends represents true freedom !
500,000+mtg at age 48 or older = noose around your neck
NO MTG & NO DEBT at age 48(my age in 5 years) = FREEDOM
