I heard this from a real estate agent this week: More parents are bailing their kids out of soured real estate investments.
I was told it's becoming more common for parents of young and deeply underwater homeowners to buy their children another house.
This gets the children into a house where their much-lower payments are aligned with today's much-lower values.
What happens to the first house? The children do the best they can to unload it in a short sale, causing less damage to their credit than just walking away.
One can presume the kids make payments to their parents - and that someday this will all be worked out with some kind of inter-family transfer.
Anyone else hearing about this?
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