One mad friend

A close friend called me last night, madder than a wet dog in the winter. Here's what he said.  I sold him the house!

So, I buy a house in Thousand Oaks 5 years ago.  I paid $645,000 for a 4 bedroom 2 bath home with $200,000 down.  The house now is worth $499,000.  Like a fool I’ve made my payments on time and made peace with the fact that I bought at the wrong time.  We’re not planning on moving any time soon and I can afford the payments. 

Just the other day I was talking to one of my neighbors, Bob, who purchased their house about the same time we did, similar home 4 bdrm 2 bath and for the same price.  Bob tells me, in a bragging kind of way, that his lender just reduced his mortgage principle, by $125,000.  Bob tells me, he bought the house with no out-of-pocket money down, he borrowed the 10% down on a second mortgage.  Just add to the bragging Bob tells me his second mortgage lender just settled the $64,500 second lien for $12,000. 

What the fudge is going on!  Bob, a good guy, employed, married 3 children, bought a home like mine for the same price in the same neighborhood with no money out of his pocket and now he has $31,500 equity, FREE equity!  And I’m stuck with my home under water and $200,000 out of my pocket.

I decided to do a little research and found out these deals are going on all over the country.  Banks are giving away money in the form of debt reductions.  The only qualifications that you need to get a debt reduction is a home that’s upside down, market value not worth what you owe on mortgage balance and a hardship letter.  Apparently there are hardship letters all over the web if you need one. 

The only hardship Bob had was paying for his new car and the 5 credit cards the family had.

Boy, do I feel like an idiot, play by the rules and I get screwed.

Any friends calling you.

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Comments

  • For every homeowner that gets their debt reduced there are two homeowners that don't qualify and end up losing their home. It's not as easy as finding a hardship letter on the internet and poof, the debt is forgiven.

  • Again, the honest, hardworking person gets screwed again. I, too, an in the same boat. Wish I hadn't of put any money down on my home!

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