When I looked at the loan history of the houses that I considered buying, I noticed something disturbing.
It’s quite rare that the owners lose money in the process – more often, it’s the banks that are losing 100K’s or 200K’s but not the owners. In each cases, the original owner simply took out the home equity loan equaling the amount of their down payment (or more) before foreclosure.
I used to think these morons are taking 500K loan – but their action is consistently smart. And I grow concerned as I wonder how much of our economy was fueled by these kind of money. It must have been quite an effect.
