If that alternative is taken, the shortfall is added to the loan balance, and so the borrower gets further and further into debt over time.
Unless they're in California, and the value of their home increases dramatically over the course of a few years, and when they sell they can pay off their negatively-amortized mortgage and take a profit to boot.
3 posted on 08/16/2007 11:15:46 AM PDT by mvpel
(Michael Pelletier)