First off, Outback is
not an upscale steakhouse.
Secondly, I read that article this morning. While it annoyed me that these people were so brazen about it, it's not a new thing. As the article points out, in Florida it can take a year and a half ON AVERAGE from the time foreclosure proceedings start until the actual notice of eviction is granted. Many people will take advantage of that time to save, knowing that they can't get the house back by making those payments. There's also a lower chance that they'll trash the house upon departure, unlike people in states with faster foreclosure clocks.
I agree with Kevin. It was a bad bet that no one in their right mind would have taken. But, these "bankers," who usually had little experience in financial services, were focused on selling the houses. After a few months, mortgages tend to be sold and repackaged--meaning the original bank has no stake in what happens to the house. 2000-2007 was the Wild West as far as financial services were concerned. I remember being a college student, being offered credit cards with $45,000 limits! It was easy for the banks to offer those amounts and not worry if I defaulted.
The reader comments on the original article are great.
I was much more offended by the article in the Times last week about the mother and daughter who were stunned to realize that they had borrowed $100,000 for the daughter to get her BA in Religion and Women's Studies from NYU. They wanted to know why someone didn't stop them from doing it. WTF?!
Threaded Mode
