From Jeff Clark in Growth Stock Wire:
"I live in luxury and I haven't made a mortgage payment in almost two years," Don bragged. He sipped his chardonnay, leaned against the country club's bar, and shared with me the story of his real estate prowess...
"I paid $3.4 million for the house in 2006, and it was worth every penny at the time. It's 6,700 square feet with a pool and a one- acre lot. I'm on the hill overlooking the fourth fairway, and I can see all the way to [the next city] from my bedroom window," Don continued.
"Wachovia Bank loaned me $3 million, and the developer took a second for $400,000. I don't have any skin in the game – so to speak. I made my mortgage payments for a while, but when prices started to fall, it just didn't make sense anymore. I mean, why should I pay anything when I'm the only one with nothing to lose?"
"But," I asked, "hasn't the bank tried to foreclose or force a sale of the house out from under you?"
"Ha!" He crowed...
Read full article...
More on banks:
The REAL state of the US banking industry
Treasury admits its mortgage boondoggle is an utter failure
Your bank is using you... and encouraging reckless behavior
