FB...the NEW Scarlet Letters?!?!?
One comment said:
"Finally I don't really hear about any FB's."
Come on now!! You think ANYBODY who is putting up a front and living beyond their means is going to tell you that?!?!?
"Hey Jeff, nice Mercedes!!"
"Yeah, it would be a lot nicer if I weren't behind on the payments and using my credit cards to pay for groceries and my mortgage".
DOES NOT HAPPEN. You are correct that it is like the stock market. Nobody brags about their losses...only the wins. Nobody is going to be bragging about all of their "negative cash flow" properties in the next 2 years. Heck, I wouldn't know these people were FB's if I didn't get to see their credit report and all of thier "assets".
Maybe that is the problem...if people had to wear the NEW Scarlet Letters "FB", we could identify them easier ;)
From the comments I have received, people really like the stories of FB's. Sooo......here you GO!
Take this borrower for example:
Bwr needs to refi both of their "investment" properties, AND their primary residence to get cash. They are having trouble renting the 2 properties, and here is the kicker...the bwr WANTS TO BUY ANOTHER PROPERTY!!!! They need the cash out from the "rentals" to help pay the bills since there is no renter, and when there is, it won't cover all of the expenses. They need to refi the primary residence to pull cash out to buy another rental. Needless to say, I didn't even bother to get into the specifics of this file, because they were going to try and do is ALL at the same time, with different lenders, so they could refi each property as "owner occupied". The credit wasn't that great anyway, but I did not feel the need to get wrapped up in that situation. Just a can of worms waiting to spring out. I'm sure they eventually got it done, but I have no confirmation of that. If you can't rent the 2 properties you have, why would you buy a third one?!?!?!??!? Oh yeah, they keep appreciating, I forgot!!