Amazing Story Of My Friend's House in Foreclosure
An Amazing Foreclosure Story
OK. This blew my mind. I was speaking with my friend and the conversation turned to his home.
A few short years ago, he purchased a HUD home for $117,000 in Palmdale Lancaster Area of Los Angeles. He barely made the payments and got by...
His house was recently appraised for $430,000 - WOW
This guy never made more than $2000 a month in his life and now is sitting on over $300,000 in equity in his house.
Or that's what I thought.
His house is in foreclosure and the bank has given him 90 day notice!
Unreal.
He has borrowed his way to the top.. except this top is the bottom.
How can someone blow through $300,000 in equity and end up in foreclosure proceedings?
By borrowing and refinancing the house over and over.
And what do you do with all that money? Pay your mortagage payments and buy lots of BIG toys.... And at the end, he ended up in foreclosure.
One of the biggest reasons for being in foreclosure is the greed and refinacing of the fast equity so many people have enjoyed over the last few years.
My advise to him was to try to restructure the loan with the bank and get some time to get his life in order. His loans now exceed his property value and a foreclosure will be the only option left for the lien holders.
There is alot to be learned from this story.
foreclosure investing
OK. This blew my mind. I was speaking with my friend and the conversation turned to his home.
A few short years ago, he purchased a HUD home for $117,000 in Palmdale Lancaster Area of Los Angeles. He barely made the payments and got by...
His house was recently appraised for $430,000 - WOW
This guy never made more than $2000 a month in his life and now is sitting on over $300,000 in equity in his house.
Or that's what I thought.
His house is in foreclosure and the bank has given him 90 day notice!
Unreal.
He has borrowed his way to the top.. except this top is the bottom.
How can someone blow through $300,000 in equity and end up in foreclosure proceedings?
By borrowing and refinancing the house over and over.
And what do you do with all that money? Pay your mortagage payments and buy lots of BIG toys.... And at the end, he ended up in foreclosure.
One of the biggest reasons for being in foreclosure is the greed and refinacing of the fast equity so many people have enjoyed over the last few years.
My advise to him was to try to restructure the loan with the bank and get some time to get his life in order. His loans now exceed his property value and a foreclosure will be the only option left for the lien holders.
There is alot to be learned from this story.
foreclosure investing
posted by Mr. Foreclosure at 9:31 PM
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