Quote:
Originally Posted by cl8ton
Saw a clip on the news of a new type of home buyer.
They are defaulting on their current ARM’s but before they are foreclosed on, they buy
another house with a fixed rate then simply walk away from the first!
|
I wonder how many folks are really in a position to do this though. I am in a perfect position to do it, but I don't think I represent many others. I have a 5/1 ARM on my condo in VA and I'm renting it out for about $25 a month more than my total carrying costs. I have a signed lease, so if I apply for a mortgage to buy a house here in AZ, I'll get credited with 75% of the lease to offset my mortgage debt. My ratios are low anyway, so I should have no problem qualifying. Once I get into my new house, I know I won't have to worry about my credit for several more years. So, if my tenants in VA were to walk, I couldn't find new ones and I couldn't sell the house, what would prevent me from mailing the keys in? Not saying I would do that. But plenty of folks are in worse shape than I am and would have to do that.