In addition to the toxic mortgage products we are all acutely aware of, there are new mortgage products advertised (e.g., pay $20 for each $100,000 borrowed, if you “don’t care about paying off your property”, etc.). A realization came to me today — these mortgagees pay very little down (if any) and pay very little monthly yet they still gain a tax deduction. Could this be considered a new type of “renter” (for the long-term) ??
People who just walk away don’t worry about finding someone to assume their obligations either . . .
I’m not so certain this isn’t going to be a “trend” that we will see (a lot) more of.
I know this question was crazy, but I can’t help think people with these toxic loans who are going to be foreclosed on are going to get in a certain mindset and consider the house “disposable”. Okay, maybe it will screw up their credit for 7 years, but I’ve seen people file bankruptcy who have more stuff (house/cars/clothes/vacations) than I do.
(e.g., pay $20 for each $100,000 borrowed, if you “don’t care about paying off your property”, etc.)
I heard that one too the other day, it was also good for ten years.
I don’t seem to recall the need to have pretty good equity to do it too. Anybody catch the source so we can see if it’s a neg-AM loan and what the equity reset point is?
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