I bought a foreclosure as a first home at 24. It was in 2007 and it was about 30k under market value with a newish roof and ac but needed to be gutted. I'd done a lot of remodeling work so i figured I'd just have to pay for materials.
Queue the recession. Citibank laid off thousands of people after there first bail out. I'm safe! Woo! Then they got there second bail out and laid off thousands more including me. I let my little bit of credit card debt go delinquent. Then i let them repossess my used truck. I'm working two part time jobs and hunting for a replacement full time job but my income had been drastically cut. Then my roommate got canned too and that was that.
A dude knocked on my door and served me foreclosure papers. The roommate and i moved out. Goodbye credit. Goodbye house and dreams. Fml.
Almost two years later, i was working a construction job and i get a phone call. It's the bank offering me a refinance on a house I've not been living in and foolishly thought was foreclosed on.
Their offer was that i pay 7 something a month on a 40 year mortgage for 96k. Sounds good right? I mean the house at fair market value was only worth 70ish but this way my credit isn't ruined and i have the house back right? At the end of the 40 year mortgage they want a balloon payment of an additional 65k.
160k for a house I'd foolishly bought for 130k but was now worth 70k.
If the shit ever does hit the fan, you can find me feasting on the bankers. Shit, I'm one financial upset away from knocking on there door as it is.
Yes your honor. Exhibit A. Would the jury please note that his honorable judge fancy pants looks like an old wrinkled pillow in that robe. Suck it!