I think I get it -- but why do the deficiency judgments matter?
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If the house price goes down you can default on the mortgage and the bank won’t be able to collect the difference between what it sells the house for and what you still owe on the mortgage from you. Lack of deficiency judgment = embedded put option on the home.
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thanks for introducing me to "deficiency judgments"... I've never owned real estate, but for some reason I incorrectly thought all US residential mortgages were non-recourse.
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Happy to help.
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Instructions unclear - bought gold.
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Hard to shoot an episode of cribs with just gold.
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Just gotta watch out for capex on maintenance haha :)
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What is deficiency judgment? And you may as well list the states
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Not so sure it’s black and white in deflation case. How much money do you lose before you throw in towel? What if throw in towel and market recovers? What are credit implications of throwing in towel? FYI, I’m waiting until dust settles to buy new home.
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Unless you are able to get a no money down loan (the only one I’m aware of is a VA loan) you are going to lose your down payment if you walk away from a home mortgage in a deflationary environment.
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