Re:Some young people are buying houses with friends
by cortesoft on Wednesday March 06, 2019 @09:44AM
(#19319229)
If the house is worth a lot more than the debt, you don’t see many foreclosures. An owner could simply sell their house and keep the profit, or take out a HELOC. Foreclosures are much more common when the debt level is high and/or the house is under water.
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Re:Some young people are buying houses with friends
by mikefivedeuce on Wednesday March 06, 2019 @10:17AM
(#19319484)
It's also dependent on the jurisdiction. In some cases the lender doesn't actually have a right to proceeds in excess of their loan amount (plus interest, penalties and fees).
Re:Some young people are buying houses with friends
by verelo on Wednesday March 06, 2019 @10:40AM
(#19319654)
One other thing to consider is brand reputation. Most lenders, big bank lenders at least, don’t want their brand being the one that took a family home away. Often before things get real bad they will offer to break the term and let you refinance somewhere else.
Re:Some young people are buying houses with friends
by wbl on Wednesday March 06, 2019 @11:48AM
(#19320298)
In the US 30 fixed have no prepayment penalty.
Re:Some young people are buying houses with friends
by verelo on Thursday March 07, 2019 @12:12AM
(#19325678)
That's a good deal! In Canada pre-payments often result in fees, which isn't ideal. Good(ish?) news is the banks will let you transfer out with no fee (or a reduced fee) if they want to remove your risk from their portfolio.