It’s essentially getting people to add a revolving type credit debt to their already over leveraged lives – for what? To keep a house that’s underwater?
When secured loans go bad and a short sale or foreclosure must take place, at least the obligations are wiped out with the disposition of the property. This is the best outcome for borrowers who have a legitimate hardship.
With UNsecured loans, the obligation to pay that debt will follow you around for a very long time. In some states, the statute of limitations on debt collection for unsecured debt is 25 years!
