It's not fair

iVillage Member
Registered: 06-02-2009
It's not fair
1
Wed, 07-14-2010 - 6:18pm
My friend lives in Arizona and she is walking away from her house because she "can not" afford it, and she owes more than it's worth. Mind you her house is appraised at $140,000 and she bought it for $170,000, but she took a home line of credit out for $100,000, so she now owes $270,000 on it. She got a new truck when she took out the line of credit and bought several other things. She gets to keep all of the things she got
iVillage Member
Registered: 03-10-2010
Wed, 07-14-2010 - 6:27pm

It isn't fair, but that is the nature of nonrecourse mortgages.

http://en.wikipedia.org/wiki/Nonrecourse_debt

Even very wealthy people are walking away from their real estate that is "underwater," because they aren't about to make payments on (what should be) assets that are worth less than the mortgage.

~OPAL~

~OPAL~   onoz_omg2.gif OMG ONOZ image by KILLER_BOB11694