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For home prices to deflate people would have to sell at lower prices - in some cases below their home equity. In these cases sellers would have to basically pay
by dh2022 3y ago
For home prices to deflate people would have to sell at lower prices - in some cases below their home equity. In these cases sellers would have to basically pay the bank the difference. Given how affordable 3% rates are, I think people would not sell.
- bequanna 3y agoWhat you’re referring to is called a “short sale” and they are not uncommon during recessionary periods.
- aidenn0 3y ago> In these cases sellers would have to basically pay the bank the difference Or they can default. Mortgages in the US are typically limited recourse, not full recourse. Of course that makes you a pariah to lenders for the next several years...