Posted by Stacy (AZ) on January 10, 2001 at 10:54:53:
Well, I guess this is just one of those “level of risk” problems. There’s probably not one good answer, but it depends on the investor’s comfort with the degree of risk. As for me, I’d pass on this strategy. Banks are under extreme scutiny, from within and without. I would find it hard to believe that a lender would pay-off a several thousand dollar loan, and not find it later when the books don’t balance. At least, I wouldn’t want to “bank” on it (pun intended).
My daughter had something similar happen to her. A bank made a mistake on a car loan, showing that it was paid off. She’s only 21, and not very experienced in the ways of “financial karma”. She was overjoyed at the prospect of getting this free ride at the expense of the bank. I advised her not to spend the money, and to expect that the error would be found. Sure enough, a few months later the bank requested all the back payments she didn’t make. And if she refused, because the bank made a mistake? Repo!
In Jim’s case, we know what’s what. We would be trying to get a free ride. For me, personally, I have learned not to put out that kind of karma. What I put out into the world always seems to catch up with me one way or another.
The convention…If I go, I’ll definately search-out the Texas folks. I think I’ve only met Steph and Alex from Texas; both a couple of terrific people.