The answer that was given was either misleading, uninformed or baffled. The Mortgage Industury, which supports flipping of houses, has altered the law on the Federal level where they can take your home with one missed payment. I do not who this ‘expert’ is.
I lived through it with Inhabitant City Bank. I missed one (singular payment. Although their ‘Loss Mitigation Dept’ try to work with me, the repayment to get back on track was $1,000, next month $4000 and the next $9,000. In the meantime they hired a foreclosure attorney which sent me threatening letters, but years end, the so-called amount to right the loan was $64 thousand dollars.
You see, in West Jordan Utah, house prices skyrocketed from $130K to $350K. Inhabitant City bought the home back from themselves for $108K. I had small sale offers as high as $122K. Instead I filed bankruptcy to stop the foreclosure on involuntary stay. The Fed Bankruptcy Court let the house go in May 2004 to the NCM, profteering.