Quote:
Originally Posted by AcGold
So I don't get it FoShizzle. Break it down, they had the option of selling the house to get back what they invested in the mortgage but chose to take nothing when they couldn't make payments? (I'm still just a renter and haven't had to deal with mortgages yet)
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Chances are good they would not have been able to sell the house because after real estate fees, legal fees and the fairly dramatic loss in market value they would not have gotten enough to pay the mortgage in full. Unless you can make up the difference in cash, the bank won't allow the sale to happen. Some people are just dolts and will waste their equity away while living every last second in their house. But most people understand selling and realizing some of their equity is better than a total loss plus bad credit.