Re:How Home Loans Have Changed since 2000
by joeblubaugh on Monday August 15, 2016 @07:56PM
(#12294489)
The debt is collateralized by the house - give up the house and let the bank pay for the risk they took on you. You're under no obligation to the bank to overpay for housing when things change - you're just not likely to get another mortgage either.
[ Parent
| on HN ]
> You're under no obligation to the bank
Yes you are. You signed a contract. This gives you an ethical if not a moral obligation. You have a legal obligation to pay in all states, which is why the lender can foreclose on you if you fail to do so. In some states, you also have a legal obligation to make the lender whole if they can't recoup their loss with the foreclosure sale.