On Wed, Jan 01, 2003 at 03:15:08PM -0600, Dan Minette wrote: > That wasn't true in Houston in the mid-80s. We have friends who were > in the position. Their dream house could be purchased for less than > they paid for a much smaller house. So, they set it up so they rented > out their old house, bought a new house,
How did they buy the new house? Cash, or mortgage? The reason I ask is because I wonder if they got a mortgage whether they had any difficulty getting it, explaining to the bank what they were doing, etc. > and then stopped paying the mortgage on the old house, while taking in > the incoming rent. That is quite enterprising of them. I wonder if the bank was grateful for the rental income when they eventually foreclosed, or whether they kicked the renters out. Do you know if the rent was enough to cover the mortgage payments on the old house, or did rental prices crash along with home prices? > There were so many forclosures in Houston during that time that their > lawyer told them that > 1) No one was ever prosecuted for this > 2) Their credit rating would suffer a minimal practical hit, as long as > they had good credit other than the forclosure. Do you know if it turned out to be true? If you friends applied for a new home loan, did the next bank really not care that they intentionally defaulted on their previous mortgage? > Since the US government picked up the tab, no one minded. How did that work? Did the government buy the home the homes for the cost of the mortgage from the mortgage holders? How was that arranged (i.e., what reason did the government give for the intervention?) -- "Erik Reuter" <[EMAIL PROTECTED]> http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
