[quote=ybitz]What if your property was “under-water” (you owe more mortgage on it than it’s worth) when the government exercises eminent domain on your house? As far as I know, the government only has to pay the fair market share. Would you get slapped with a bill from the bank? Or would the bank just have to eat the difference for a non-recourse loan? I wonder if this has ever happened before.[/quote]
