So just to make sure I understand the situation… A homeowner purchased a home with a risky financing vehicle and only put 5% down. He bought it in a poor noisy location. So today his loan reset, (as he knew it would) and the home has depreciated. He has cash in the bank…
So your advice is to not take any responsibility and just bail out.
Why not ask him to insure the place to the hilt and burn it down?
