1Kevin1

Ed, it is still legal.

A Home loan is a Non-Recourse loan, meaning it is secured by the value of an object (the house) and lenders cannot take other assets.

People have been doing essentially the same thing in California.

They also buy a home at current value (1/5 the value of a couple years ago) then let their current home be foreclosed upon, however it is still a net gain to their wealth (E.G nicer home, lower payment etc.).

My wife and I have the credit and the money to do this, but feel it is un-ethical.

Seems like nice people always finish last.

Example: $600,000 in CA currently worth $200,000.

You put down $120,000 which brings your mortgage down to $480,000.

However, now you can buy it for $200,000 if you have good credit and the money.

You put down $40,000 on a $200,000 house (next door to your current house) then only owe $160,000 and let your prior mortgage foreclose.

If you put that same $40,000 into your existing house you still owe $440,000 a far cry from $160,000 if you choose to wreck your credit and your conscience.

Can we get some help for honest people please?

I'm surprised that nobody has linked the tool that most people own. Most crews walk around picking up nails with this magnet tool on job sites. I've seen more than one flat tire on a job site. Link is below.

A large magnet is probably almost as much as this.

I do not own or endorse this brand, there are tons. This was the first that came up in google.

http://www.amazon.com/Rolling-Magnetic-Sweeper-Metal-Magnet/dp/B001CKWOJC

Money. Yes, it is about money.

However painting those against it as greedy, is really pretty stupid (yes, you did this).

You won't listen to Habitat For Humanity and others who oppose it.

Really, you think that Habitat for Humanity is GREEDY????

The problem is that MANDATORY regulation of MORE CRAP = HIGHER HOUSING COST = ONLY RICH / WEALTHY CAN AFFORD HOUSING

This affects primarily POOR PEOPLE.

While you spend the fictional $3,000,000 to save one person, how many homeless and poor die?

The US tax structure rewards home ownership with tax incentives, and the same with investment property.

By making it harder for poor to achieve these two things you RAISE NOMINAL TAXES ON THE POOR.

I am lucky enough to own more than 1 home. I have seen the tax structure and savings first hand.

Warren Buffet stated that he pays the lowest (percentagewise) taxes now that is one of the richest people in the world.

Reform the tax code away from such a benefit, or make it easier for the poor to access.

After all dying from cold, hunger, or the flu is still dying.