If your home doubled in value over a five year period, would you feel the profit was yours? Of course. But you decide if it declines in value you should be able to walk away?
“If your home doubled in value over a five year period, would you feel the profit was yours? Of course. But you decide if it declines in value you should be able to walk away?”
The fact that the banks took no risk on contracting the mortgage means that there is NO contract. TARP and gaming mortgage insurance killed any contractual obligation.
The banks could give loans w/o concern of actual value knowing they’d be covered by both receiving 150% of actual value after default. Give loans for properties 3 times the actual value, say 600,000.... the actual value is 200,000... insurance covers 80% of intial loan 480,000... bank walks with pockets full of cash... TARP... and interest payments.
That is one freedom still left. If you want to move am I supposed to judge and/or attempt to stop you? Regardless of your reasons the answer is no. It’s ugly in housing right now in most places.