Friday, June 6, 2008
Sex parties, stupidity and mortgage defaults
A trail of foreclosures left by a Florida couple, Scott and Deanne Hopp. They bought and sold house after house, and seem to have done well at it for a time. They specialized in buying houses with less than no money down, borrowing more cash than they actually had to pay. One of their homes caused a scandal when it was featured in the local newspaper as being used for sex parties promoted on the Internet. (The report said that some partygoers had to pay a fee, but that others had been admitted free in return for agreeing to allow the party organizers to use videotapes of their party activities.) The Hopps protested that was not their fault, that a tenant had organized the parties without their knowledge. Simply renting out the house was a violation of the terms of the mortgage agreement.