A Youtuber named Make It Make Sense apparently posted these details on their YouTube. It has since been deleted. I was sent this information in an email. He or She was allegedly able to get a real estate attorney to access her mortgages and explain the situation. Here is what they said:
Kim bought her foreclosure in October 2012 for $880,000 but took out a $1.65 million dollar ADJUSTABLE RATE MORTGAGE because Kim an Kroy couldn’t qualify for a 30 year fixed mortgage due to having bad credit. I’m already confused. Why would a bank give someone a mortgage for twice as much as the purchase price? Remember they were evicted weeks before on the show. Also took out a 2nd mortgage of $300,000 in 2013. In 2018 the house of cards started to collapse because they still couldn’t qualify for a fixed rate mortgage and they asked their lender for a loan modification which is usually given to borrowers that are delinquent or request changes of their loan due to financial hardship. Kim got sued by American Express for a $215,000 credit card bill in February 2019. Kroy was sued by his agent for $22,000 in 2020 after trying numerous times to get paid.
The 2nd mortgage was in foreclosure and was allegedly sold for $257,000. Property records as of Friday weren’t updated so there’s no release of lien yet. Georgia 1st mortgage lenders superceded the 2nd so homeowners usually don’t get kicked out even if the mortgage was sold in a foreclosure. Kim has keep the 1st mortgage current and has a year to pay off the 2nd mortgage. The 1st lender has the option to pay off the 2nd loan and demand the money from Kim but usually doesn’t if the homeowner is current on payments. Sounds like Kim and Kroy need to get JOBZZZZZ!
So Kim’s knows that even with the foreclosure on her 2nd mortgage they will not kick her out so that’s why she’s still in the house.
Hmmmm this is a bit much for my brain today. On the other hand it makes sense.