How did an Iowa couple with two foreclosures already under their belts get to own their house free and clear after making only one mortgage payment? By taking advantage of a law designed to keep married couples from making huge financial commitments without the other’s consent. Since the wife was late to their closing and didn’t sign the mortgage, the couple now owns their house free and clear after making only one payment.
They aren’t quite heroes of the housing crisis, though. The couple is under investigation because of their previous foreclosures, the wife’s former work as a mortgage originator, and the existence of a relative who got a “free” house in the same way. The state government of Iowa is currently working hard to close this loophole. No more almost-free houses.
Iowa loophole voids mortgage, gives couple ‘a free house’ [Des Moines Register]
‘Free house’ couple’s earlier foreclosures are questioned [Des Moines Register]