Oh, man, this is trouble if it's happening on a big scale - but hey, it makes sense. You get that $700,000 condo, can't afford the payments, what are you gonna do?
I love the Another F'd Borrower blog... good anecdotal from an insider
And I'm starting to think that rushed-through new bankruptcy law is just 'cause banks and lenders know that this type of stuff is happening, and that the bills REALLY come due real soon - when property values decline more...
Here's the case:
"I need to do a refi cash-out to get money to pay my mortgage."
Yes, you heard me correctly. I am seeing more borrowers that are refinancing to get cash out so they can pay their mortgage and "stay afloat". Yes, it seems that the mathmatically challenged "buy-now pay-later" American home buyers don't seem to understand that taking out a bigger loan to pay off a smaller loan is NOT a good long term financial strategy
November 30, 2005
Posted by blogger at 11/30/2005