Below are actual numbers of a home in foreclosure.

April 1 1998, homeowner buys home with $70,000, 1st mortgage.

January 26th 2004, refinances, with $105,400, 1st mortgage.

Homeowner pulled $35,400 cash out of home.

February 19th 2005, obtains home equity loan of $21,000

Homeowner has now pulled $56,400 out of home.

December 12th 2005, homeowner replaces (paid off) the $21,000 home equity loan with a $70,000 home equity loan. Netted another $49,000 out of home.

Homeowner now owes $175,400 on their home that at best, tippy top, may sell for $150,000.

So within two years the homeowner pulled $84,400 cash out of their home.

The homeowner now just simply walks away from the home and they took more money out of the home than the original purchase price.

The numbers I posted are from actual court records.

Don't feel sorry for these people who have legally robbed the bank with the bank's permission.

Both the banks and the government have been made fools.

Now our Gubment wants to print more money to give to the banks to buy these properties.

They have no choice but it hisses me off!

Remember, the HOMEOWNER got the money and spent the $84,400.

...and a couple of other things, these poor homeowners literally strip the house down to its bones.

After they live rent free for almost a year they sell the fridge, stove, microwave, dishwasher, pull up the carpet and take the air conditioner unit.

The news media NEVER reports that they live in the house for FREE for almost a year before the foreclosure court order is final.

There is one foreclosure up the street from my house where the homeowner pulled all the inflated equity out the home and paid cash for two condos on Long Boat Key, FL.

The homeowner's took the money, spent the money and have no intention of EVER paying the money back.

Why bother when you can just walk away?

__________________
Gary Spicuzza, *SAFE
Copyright 1956.
No Rights Reserved.
*Self Appointed Financial Expert

Very interesting post. I always wondered how we got here.