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Are there any financial products to help with this situation; ie allowing you to take out an $800k loan on the new house? Presumably this wouldn’t be any riskie
by sbrother 4y ago
Are there any financial products to help with this situation; ie allowing you to take out an $800k loan on the new house? Presumably this wouldn’t be any riskier for the bank than simply continuing to own the old underwater loan. Possibly less risky since the homeowner, living where they wanted to live, would have less incentive to simply walk away.
- bombcar 4y agoThe whole situation is confused; banks often have quite the ability to "go after you" for deficiency but in actuality they rarely do. And in some states, such as California, on the original purchase loan they cannot; it's non-recourse. But they sold your loan long ago, and trying to "do the math" and resell a new underwater one doesn't work.