“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
