if i got a mortgage for 800k usd and my house is suddenly worth 500k usd instead. the bank still charges as if its 800k bc thats how much i borrowed. if i want to pay less i cannot, if i want to sell the place and go somewhere else i will only get 500kusd for it so im stuck here unless i find 300k usd. not great for current homeowners

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Not terrible either. You planned on it.

You mean you agreed to the terms of the loan when you bought right? Bc yeah, that just means you shouldn’t have bought if you can’t pay the mortgage

your house is basically a bond that is it

Shitty inefficient bond to need so much upkeep and artificial sacrifice of living space for other people to maintain.

What dumb fuck designed the regulatory structure for these bonds? And the escrow situation? And the peculiar taxes? This financial instrument sucks.

Yep yep yep