Quote:
Originally Posted by Brando
Rick, I didn't say I agreed with it. I just put it out there as a solution. Is it the right one? No. Would I do it? Hell no. But then again, I wouldn't (and didn't) buy a property that was severely over-valued.
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Buying an overvalued house has nothing to do with any of this. If you lose your job, it doesn't matter how much your house is worth. You can no longer afford to make the payments. I don't see anyone here claiming they shouldn't have to repay a car loan in full once they drive the car off the lot and lose 15% of the value, let alone diminished value after an accident or lots more mile, wear and tear. Just because a house doesn't appreciate doesn't mean the bank shouldn't expect a loan to be repair. With the inflation we're going to have in the near future, repaying loans with cheaper dollars will have a similar effect to getting a reduction in principal. But at least that's the market at work and not some silly law forced on banks by politicians. Well, actually the inflation will have been forced on all of us by politicians' overspending, but that's another thread.