5 ms·

Not in non recourse states. (https://homeguides.sfgate.com/happens-give-keys-back-mortgage-company-54780.html https://homeguides.sfgate.com/happens-give-keys-ba

by llukas 7y ago

Not 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 ago
That'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 ago
  I'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'
  - eloff 7y ago
    I believe that's how it must have worked. It still happens in Detroit today.
    - vkou 7y ago
      Those aren't underwater mortgages, those are unpaid utility bills and property taxes.