4 ms·

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

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.