Quote:
Originally Posted by madmaxx
spo1715,
Wow, I guess I have led a sheltered life. That almost sounds criminal. I am amazed anyone would loan money on a Cobra.
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It's easy. House values go up, you refinance, pull out all of the equity, buy whatever you want, like a Cobra, or a trip around the word, plastic surgery, or some people even put it back into their house for remodels and upgrades (what a concept
).
Then in another year, you repeat, and when the mortgage gets a little tight, do it again to make your payments...
Then something happens.....
.......the market dips (or crashes depending on your view), your interest rate resets, can't make the payment, and you get foreclosed and lose it all......or get bailed out
Save the Hurricane!
