This is the problem I worry about for all my friends that are buying right now. We are all couples with median incomes over 100K and yet without downs are still buying 400-500K homes/condos with at least some part of the mortgage adjustable. Historically, has this scenario taken place often?:
‘They’ll be upside down on the mortgage. They’ll sell for $200K, and owe the bank $400K. Then they’ll get the $350K house w/ yard, and get the mortgage on that. Now they owe $550K in mortgages.’
It seems like they would prefer to declare bankruptcy and walk away from it all. I’m young and I’ve never heard of someone paying a mortgage for a home they no longer own. Thanks for your input!
