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Those numbers seem very unlikely. Ignoring that California is a nonrecourse state. If someone ended up owing 1.2 mil on a 500k house, they could walk away and o
by bhawks 7y ago
Those numbers seem very unlikely. Ignoring that California is a nonrecourse state. If someone ended up owing 1.2 mil on a 500k house, they could walk away and only be out the house and whatever payments they had already made on the loan. The risk of massive correction simply isn't borne by the individual (especially if they've bought the property in the past 5-10 years).
- i_am_nomad 7y ago“Only be out the house and whatever payments” isn’t negligible in most cases, why are you hand-waving that away?
- bluGill 7y agoBecause if you can walk away from a $9000/month payment into a $900/month rent, investing the difference will make you better off in the long run.