Instead, they saw a big payday and couldn’t resist. People with no real experience with money will spend whatever you give them, which they did. I’m guessing the house was previously owned by the mother-in-law, because I can’t see that couple having the discipline to pay off a house on their own. They got her to transfer it to their names and then booted her.
You’re probably right. The house has a curious property tax assessment history:
Translation: the house was purchased by its previous owner sometime before 1983. in 2004, there was a property transfer from the owner to one of his/her children. The owner either died or signed off the house on the way to the nursing home.
Children turned out to be deadbeats with no jobs or health insurance. They took out a “liar loan” and then refinanced it several times. In 2007, subprime crisis hit and their next refi fell through. So they just stayed in the house and waited for the bank to come and evict them.
At some point in 2006 or 2007 they must have learned that they could revert their prop 13 tax reassessment because the transaction was exempt, so they took care of that.
Sadly, the trustee sale was so long ago that ForeclosureRadar does not show that house any more. So I don’t see the exact history of the loans. But it would probably fit this description.
