He who forgets the past is doomed to repeat it! Reminds me of all the traders who expected to get rich in the late '90's because the market would, of course, only go up, which was a very, very large and dangerous assumption.
While I admire their ambition, I can't help wondering where that couple will actually end up ten years down the road. Many of the Realtors I know who tried to play that game back in the mid to late '80's not only lost everything, but have still not financially recovered.
Remember, when you default and are foreclosed upon with a purchase-money loan it dings your credit, but the debt goes away. Once you refinance, however, foreclosure does not wipe out the obligation and you are liable for a deficit judgment equal to the amount of any loss the lender sustains after the subsequent sale of the property.
That couple better pray housing prices do not begin to deflate, which could throw a rather large monkeywrench into their little get-rich-quick scheme.
Let's face it, there is no easy way to get rich -- it takes a lot of hard work!
Newly
