[quote=sdrealtor]Actually had 2 loans taken out in 2006 for 457K and 57K. They were well underwater on both loans. First NOD filed in May 2007 and they must have played the loan mod or BK game to buy themselves 3 years of free living. They probably dont need sympathy and could easily be walking away with a 6 figure bank account if they saved some of the payments they never made.[/quote]
Even if their lender(s) shut them down before they could draw all of their open LOC down, if I am reading your post correctly, they had access to $514K over and above what was left of their PM loan, which was still on the books at the time of foreclosure, if I understood UCGal’s post correctly.
[quote=sdrealtor]FYI it was only 340K. The rest is missed payments/fees.[/quote]
Regardless if it was ONLY $340K, they only made payments for a few months at most. That’s A LOT of “free living” in my book (well over $60K worth). If 2006 was the first time they ATM’d, I will assume here that they had made payments on their purchase $$ loan of perhaps $135 – $153K for 15 years or so when they “qualified” to tap the ATM, assuming they didn’t purchase with a no-money-down VA. If a VA PM loan WAS used in this case, their modest RE purchase in MM turned out to be nothing but a gravy train for them.
What were these lenders thinking when they loaned a total of $514K on (subordinate) HELOC’s (in MM, no less)??
