Quote:
Originally Posted by Superfraggle
In the way that you still owe $500,000. Just because you could pay off the debt if you sold the house doesn't mean the debt doesn't exist. The house is only worth $1 million when someone buys it from you. Until then, it doesn't help with the debt.
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You could make that analogy with any asset. The stocks you have could become worthless too. The money in the bank account could undergo inflation and be worthless.
The simple fact of that matter is as long as you are above water on the mortgage your assets are worth more than your debts and, on the whole, you are not in debt.