Quote:
|
So if the bank makes the mistake of loaning more than they can sell the house for, didn't they screw up too? I guess that's his argument right now.
|
It's not an argument. It's a rationalization.
He took the money and spent it on debts accrued for past vacations, cars, and other crap. Then he spent the rest on more vacations, cars, and other crap, right? If not, all your friend needs to do is give the bank back the principal borrowed. (That’s called the pay-off amount. That’s the amount he no longer has because he spent it.)
If nothing else, your friend needs to keep in mind it's not just lenders that will be looking at his credit rating in the future. Employers look at credit ratings too. And your friend is a perfect example why.