I thought I did everything right but I never considered this effect: I assumed that all mortgages, by definition, were secured by the property, and exclusively the property.
If they are not, then why do they specify an address? Why not just directly sue borrower for all assets? Surely shaking down a liquid bank account or stock portfolio is much easier than taking title to real estate during a downturn.
my situtation: bought in summer 2000, (thought it was annoyingly expensive for a not wonderful house!), 8.25% 30 year fixed.
Refied once into a 5.25 5year ARM, then when I saw the crap hitting the ventilation system, refi’ed again into a 5.25 30 year fixed (no points!). I felt like gloating on the last one that I caught just about the absolute bottom of rates.
Each time, no cash out.
Fast forward to 2006. Thanks to our Great Leader’s great committment to science I am unemployed for the first time in my life, literally since age 16. (I’m 38 and just married).
