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> If you stop paying your mortgage, they kick you out. (And neither of these absolves your financial responsibility). 12 states have 'non-recourse' mortgages,
by vinceguidry 4y ago
> If you stop paying your mortgage, they kick you out. (And neither of these absolves your financial responsibility).
12 states have 'non-recourse' mortgages, where if your mortgage is foreclosed on, the lender has no legal avenue to recover the difference if sale does not recover the principal.
More generally, what provides for recourse isn't the vague idea that 'you're still making payments'. It's a signed contract saying they can. No contract, no recourse. Contract terms for things like cars and homes are heavily regulated. Cell phones are getting there.
- sidewndr46 4y agoI believe you, but how does that work? For example the federal government commonly buys mortgages. Since the federal government buys the mortgage, wouldn't it void out any state law around the mortgage?
- vinceguidry 4y agoForeclosure is a common-law procedure, subject to the laws of the state that the mortgage was taken out in. When the government needs to foreclose, they file it the same way everyone else does.