I saw a news bit on television yesterday about something called “Buy and Bail.” Apparently, folks that bought homes at inflated prices with adjustable rate mortgages in the last couple of years are now buying new, more affordable homes with new fixed-rate mortgages. Once they close on the second house’s mortgage, they quit paying on the original home and let it go into foreclosure. Illegal? I sure hope so.
In reality, none of this surprises me. The money people (banks, credit card companies, mortgage companies, etc.) insist on inviting Clover [Canis lupus familiaris, 49 in dog years, health excellent, no credit/work history] to apply for a credit card, buy life insurance, and refinance her mortgage.
I wonder how much her monthly payments would be on a $1M fixed-fixed rate 30-year mortgage? Two Thousand Dog Bones a Month?