Is it really possible distressed owners are taking out new mortgages on second homes?
Yes, according to ABC News.
I’m having trouble seeing how on earth it’s humanly possible to get a loan on a second home when your first one is dangerously headed toward foreclosure.
But I didn’t think the taxpayers were actually going to have to bail out Freddie and Fannie either.
But what’s interesting here are the readers’ comments on the blog, The Consumerist.
Narf writes, " One guy at my Dad’s work is doing just that… he’s figured 6 months of not paying the current mortgage + savings=the down payment for a new house down the street that’s priced 40% lower than what he owes on the current one."
Okay, but it looks like the banks would get wise to this.
Maybe they have. That will put one more obstacle in the way for future borrowers.
To read more about distressed owners and what some of them are doing who are facing foreclosure, go to Buy a second home! Wait, What?