I wonder how many of the banks will try to get the money back since these would be non-purchase money loans with recourse. Technically, I think the banks can sue these people. Anyone know how practical it is for the banks to do this?
I’m sure the banks will try it if the amount owed is large enough. Of course, once it gets to that point, the loan will be a money loser for the bank.
The banks sure do make it tempting to try and rip them off. If you don’t have any money saved up or any assets, why not buy a house using stated income, then re-finance every chance you get and throw that money into risky investments? You might hit it big. Even if you don’t, it was the house’s money anyway and didn’t cost you a dime.
