“Where is your responsibility on this? When you were giddy with equity how come you didnt offer to pay the bank more because you were paying less than full price for the asset when the banks gave money away and inflated the value of your property.”
____________________________________

If I were answering these questions I would say that I did in fact pay full price for the property at the time I bought it. Regarding offering to pay the bank more at a later date due to an increase in value based upon events out of my control…well, I would absolutely be required to do so if that were part of my agreement with the lender. If that’s what the lender wanted, write it into the deal. Period.

On a purchase money loan in CA, the deal is the borrower agrees to make the payments and if they do not, the lender can take back the property. That’s it. As with any contract, if both parties agree to modify the deal, fine. Otherwise, no tears. Especially from a lender who is in the very business of entering into such deals over and over and over….