Re:Rents are up 40 percent in some cities
by miketery on Monday January 31, 2022 @12:48AM
(#30145016)
Aren't they supposed to repo those big purchases?
During a typical bankruptcy yeah, but 2008 wasn’t typical.
Banks were losing paperwork, mortgages had passed through multiple hands, they couldn’t deal with the foreclosure volume. Hell, banks were going under. It was a complete mess. That’s why if you stopped paying your mortgage it was often 1-2 years before anyone even came knocking.
In many cases, if you simply sent the keys back and were in a non-recourse state, nothing more happened. The bank added the home to the foreclosure backlog and deemed the debt “uncollectable”.
If they balked, you go through a bankruptcy process, but who had time for that? Plus the government had programs to help relieve underwater homeowners.
There was a bit of a financial “reset” in a sense. Many people were allowed to wipe the slate clean and start over.
Re:Rents are up 40 percent in some cities
by nopeYouAreWrong on Monday January 31, 2022 @12:35AM
(#30144913)
And that man's name? - 400 FICo
A friend told me about a friend in Las Vegas who bought a big house prior to 2008, then HELOC’d it to the max to buy new vehicles, boats, etc. Took advantage of every opportunity to leverage himself to the hilt.
Housing went tits up, so he stopped paying the mortgage for two years, then mailed the keys back and walked away keeping the cars and boats.
Sure he had to declare bankruptcy, but after a couple years was able to repair his credit and buy another home. (The seven year mark remained but hey there were willing lenders).
Bastard made out like a bandit despite going bankrupt.