TLDR; Apparently there are laws in some states that makes it very hard to foreclose. So these loans linger over for years and now being purchased by some folks

TLDR; Apparently there are laws in some states that makes it very hard to foreclose. So these loans linger over for years and now being purchased by some folks trying to restart the payments hoping to take advantage of better economy. It's very high risk business. The most surprising part of entire article is that it is very hard to enforce foreclosure for missed payments in many states. The delinquent borrowers can stay in homes for months and often years! As mortgages are essentially sponsored by US government, this whole market runs on twisted economy. The basic question is why more people aren't taking advantages of these laws and twisted economics? For example, you can live in Hawaii, buy a house, just don't pay any mortgages, declare bankruptcy and stay in the house for next 4 years for free. Or even better: buy many houses, put them on AirBnB, collect income and never pay any mortgages!