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Old 05-05-2010, 01:19 PM   #51
Da_Chief
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Join Date: May 2007
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Quote:
Originally Posted by Muta View Post
Now that I know how this works (even though I still don't fully understand it), I believe I know people who have gotten EXTREMELY rich this way. Like... having a 'Maserati as your spare car' type of rich.

In this scam, though, don't you have to pay back the mortgage at some point anyways? If so, where's the incentive to pocket the extra $50k? And why are you not allowed to put these mortgages under your own name? I'm not too familiar with this type of stuff, I've just never been interested enough to find out.
You bail on the house, bank seizes it (than sells it to re-coup the money) you lose your initial investment and afterward payments (the people actually owning the house would lose this) and your credit rating goes down the toilet.
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