BoA OWNED by person

[shmike]

Originally Posted by Papa_Complex

Perhaps not but they can profit in the sale, of that property, and have received payments towards it. They make money, on virtually every foreclosure. Believe me; both my parents were in banking for their whole lives

I am assuming your parents are retired?

Once upon a time:

Joe & Mary put 20% down. If they made 5 years worth of payments and then defaulted, the bank would take back the home (that was probably worth as much as the sale price, maybe more). Since the bank had 20%+ equity in the acquired home, they would sell it and make money.

That is a very tough scenario to replicate in a down market, let alone a free-falling market. Add in the fact that many houses in the last few years were financed at 95, 100, even 110% of value and there is no profit to be had.