Quote:
Originally Posted by NoMo50
So, to replicate your logic...if a person buys a new home, finances the home with a mortgage, and the home builder subsequently goes bankrupt. Should the mortgage then be forgiven?
When one signs a loan contract, he/she is legally obligating him/her self to repay the loan. Period. The vast majority in our generation did just that, with never a thought of trying to somehow weasel out of it.
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Wrong logic. We'll use your example:
Someone gets a loan for a new home build in the Villages. They get the mortgage for the lot and the home design, the money is handed over to the Developer. A month after the house is built, the government sends you a notification that the entire property, and the six blocks around it, is condemned due to hazardous waste that the Developer knew about, but conveniently forgot to mention to you.
Now you owe $300,000 on a mortgage for a property that was sold to you fraudulently and deceptively. You owe $300,000, AND you still have no home, because you can't live there. You'll now have to buy ANOTHER home - but what lender will loan you money while you're already $300k in debt, with no collateral to secure it?
The Villages should be paying that loan back. They're the ones who cheated both you and the bank. The bank only lent the money because they were ALSO deceived into believing it as a sound business decision to lend the money.