Quote:
Originally Posted by HardDrive
I knew my sister and her husband were badly underwater. I finally got her to reveal the ugly facts.
Took out jumbo, zero down, 40 year (WTF?!?!) mortgage in 2007 at 7%. Took out additional loan to cover balance at 9%. Original price was just north of $600k.
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How bad is their credit? 7% in 2007? I think they are not going to be able to refi.
And someone putting up $250K for them? Bad idea. They need to take their lumps and keep paying, or try to go with a short sale. As I said above, if inflation hits, the effective value of the loan will reduce.