How is this allowed to happen?

[Benton]

(01-08-2019, 10:08 PM)Nebuchadnezzar Wrote: No, they bought the house for $257k but continue to take loans out on the home, borrow money against the home, don't pay their bills. They've been doing it for years and I'm wondering how they are allowed to continue to borrow money?

See post 3.

Many banks know borrowers can't pay the secondary loans, and they don't care. Worst that happens to them is that family owes them a huge sum of money, they collect a big chunk of it when they file bankruptcy or die, the bank resells the house at a price it wants and gets to write off the losses as tax breaks against accrued profits. The system is set up for banks to increase dollars over the long term.

But post 3 was less wordy about it.