6 ms·

Ah, no no no no no!!! House prices can and do drop 40-60% from a peak. If you got a 95% mortage, you can really be hammered.

• _delirium 15y ago
  In most states, mortgages are non-recourse loans, meaning that in effect the bank has to eat any losses, if you choose to play hardball. If they foreclose on the house and repossess it, the loan is considered settled, and they can't attempt to collect the difference, even if the house is worth less than the value of the loan was.
  • hessenwolf 15y ago
    Pfft. I thought that was just California. One would think that that would have encouraged them to underwrite a little better.,, And who the fuck would rate any tranche of non-recourse loans AAA? How long does it stay on your credit history (officially)?
    • bzbarsky 15y ago
      7 years is the typical number I've seen for how long things stay on one's credit history.