Aldante sorry for not getting back to you as I frequently do not have any more free time to follow up on posts….
I think I see your point more clearly which is well intentioned but for this particular case not germain. (hope I spelled that right)…
Think about it, in this case the seller came in with a nice little chunk of change for the downpayment. Now if the seller had intentions of defaulting chances are that they would not come in with thier own cash. Similarly the reworks/bailouts (and don’t get me wrong, I clearly hate them) do impose restrictions on people that are specific to the resale of the home. That is, effectively you are giving up future realized profit from appreciation. Now I do not know the specifics but I think you can see that the bailout will not help this speculator at all. In fact if he does need a bailout because he cannot afford the payments he will be somewhat chained to the home. See what I mean? If the guy came in with no money down then we have a different story.
We will know what it sells for if/when it sells. Remember not all speculators are smart. Also as people look to put cash in different areas due to poor performance and low yields don’t be surprised to see a boob or two purchase a home at trustee sale. I have posted before about people making money by flipping trustee sale homes. If you know your submarket and get a deal you can make very good money. If you don’t or are a novice, chances are you will get burned.
