Let’s play a game: Where Did the Money Go?
Phoenix home that was purchased for $82,000 in 1997. They refinanced for $244,000 in November 2005 (when home values were artificially high). It went to foreclosure in 2012. An investor just bought it for $96,000. So did the sellers get a cash-out mortgage in 2005? Where did the money go? Did they remodel the house? Let’s see.
Not even one penny was spent on cleaning products or hand soap.
New carpet?
Here too?
And?
Or here?
Did they spend the money to remodel the kitchen?
Renovated bathroom?
New flooring and new window curtains? Anything?
The laundry room. Check out the dryer vent tubing.
It goes all the way over here and then up. Clever.
5 responses so far ↓
1 Ron W // Oct 26, 2012 at 7:54 pm
I’m gonna go with that money being spent on a Ford Expedition. Or something else with 4 wheels… It’s a bit sad. Had the market not tanked, I would have never been able to afford a home as a single male. At the time (2005), I remember a friend buying a home for $269,000 which just 4 months earlier had gone for $220,000. And because of the reset, he couldn’t stand paying that mortgage as the value dropped, so he let the home go into foreclosure. It sold for $120,000. Pure Foolishness…
2 taria // Oct 27, 2012 at 6:45 am
Our neighbors bought new cars and the husband had an aversion to work. They pulled over 100K out of a little tract home at the high point. They then proudly didn’t pay any mortgage for over 6 months and then the bank gave them almost 5K in cash for keys. The house ultimately sold for under 100k and the new owner is re-doing the whole place. Pretty awful.
3 Murphy // Oct 27, 2012 at 12:18 pm
I’m guessing the money went to buy a nicer house across town,for cash.
4 Lisa // Oct 27, 2012 at 4:44 pm
It is very sad……but I do have to say with this home, it would take a lot to make it appealing …jmho
5 jennifer // Oct 28, 2012 at 2:17 pm
I’m going to say debt or cars. we got a home equity loan in 2006 when we bought a new car to put it on there. Stupid, but that’s what we did.
We don’t even own the car anymore. lol We’re now doing a short sale to get out from under the mortgage on a house we outgrew 2 kids ago.. ugh.
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