My guess is a lot of people just stopped paying and have the money, the banks will never find out they’ve been stoking away the money. What a scam.
This reminds me of all the illegals who were flipping houses in california, buying them with no money down and selling them to their cousins for 100k more than they bought it, this would happen a few times and then the house would go into foreclosure without anyone ever having made a paying and illegal aliens with no education here illegally walking away with a few 100k, this happend a lot, the government was warned it was going on and did nothing. I work my ass off and wonder what the hell I am doing, frustrated beyond belief.
I don’t believe this story for a moment. How would the loan closings be completed if the seller’s bank was not being paid by the buyer’s bank?
Just think what this does to the people who really need help (and there are many). Those kind of scenarios are what makes it so difficult for those truly in need to get help.