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I actually really like that analogy. I can't tell you how many times I have seen comments on Personal Finance subreddit and other places that always criticize b
by jacurtis 6y ago
I actually really like that analogy. I can't tell you how many times I have seen comments on Personal Finance subreddit and other places that always criticize banks for being ready to foreclose on a home with no concern for the people that live there.
Of course they do, you are just a blip on the bank's radar. The decision to foreclose is a matter of business to them. So why can't borrowers do the same thing and essentially "foreclose" on the bank? Foreclosure is literally just cutting your losses. That's what the banks do all the time, so if they can do it, then why can't borrowers do it too? It is an excellent perspective.
- rhexs 6y agoDoes the bank not come after individuals years later for owed debt via lawsuit? If not, walking away seems like a good idea.
- Consultant32452 6y agoYour asset (home) is sold, and you owe the difference. The bankruptcy court decides a payment plan for you to pay back that difference. Usually you pay back pennies on the dollar. Sometimes you walk away clean.
- sagarm 6y agoIf you have a non-recourse mortgage, the bank is entitled only to the collateral (the house). Several states allow only non-recourse mortgages. https://www.quickenloans.com/learn/the-difference-between-recourse-and-nonrecourse-loans https://www.quickenloans.com/learn/the-difference-between-re...