> they'll take your house
Yes, and they'll sell the house to cover the debt. But the amount they receive from selling the house in excess of the debt goes to you.
I.e. you'll get the equity portion.
It's in your mortgage contract. Worth reading.
Yes, and they'll sell the house to cover the debt. But the amount they receive from selling the house in excess of the debt goes to you.
I.e. you'll get the equity portion.
It's in your mortgage contract. Worth reading.
And now you're homeless and with your equity you cannot acquire capital. Your credit is also tanked due to the default...
Remember, most people do not own multiple houses and having no stable address can really mess you up legally even.
I don’t feel convinced that having a mortgage debt is that much worse than not having one, if you lose your job and war and other bad things.
With a recourse mortgage, they can go through normal debt channels (including wage garnishment, etc).
Not necessarily so in the US. In several states (including the biggest ones like CA and TX), non-recourse mortgages are the default. In other states, sometimes non-recourse mortgages exist too.
E.g. right now I'm sitting on a 2.5% fixed 30 year non-recourse mortgage.
Specifically, I'm asking if the mortgage deals the poster above was discussing would help if the house is now worth less than the mortgage.