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> people would sell their homes for a dollar just to get away from the mortgage That's not how mortgages work in the USA — or any other country I've heard of!
by thechao 7y ago
> people would sell their homes for a dollar just to get away from the mortgage
That's not how mortgages work in the USA — or any other country I've heard of! Usually, the way a mortgage works, is that you owe the lender the money, and the house is the collateral asset. Divesting yourself of the asset usually requires you to pay off the balance of the mortgage on sale.
- llukas 7y agoNot in non recourse states. (https://homeguides.sfgate.com/happens-give-keys-back-mortgage-company-54780.html https://homeguides.sfgate.com/happens-give-keys-back-mortgag...)
- thechao 7y agoThat's walking away from a mortgage. The GP said "people would sell their homes for a dollar just to get away from the mortgage". The sale of the asset doesn't let you discharge the mortgage in a non-recourse state: you give the house to the lender in lieu of paying the loan. (And declare bankruptcy!)
- SuoDuanDao 7y agoI'm not certain, but I gather in this case the person who bought the house for a dollar would also take over the mortgage. Canadains are weird around home ownership, our markets don't behave like other developed countries'