You’ll get some great feedback from the investors and bankers here.
In the meantime, I know that the IRS considers unpaid mortgages as income, and you are taxed on that. How would you like to pay taxes on the $200K you didn’t even earn while you are in bankruptcy? Plus, you’ll be unable to get another mortgage for 7 years. As lending standards tighten, you won’t qualify for the “1DayOutofBK.com” blue-light special.
Can your friends handle the mortgage in 2 years when it adjusts, and payments double? Are their jobs secure to handle the recession? Remember, SD’s economy is built around us buying/selling homes to each other, and servicing our insatiable demand for clothes, cars, trips, food by spending our home equity. If your job might be affected as these industries consolidate/downsize, be wary of taking on a large mortgage.
