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A comment on Ask HN: Anyone else feels the commoditization of real estate is unethical?. Parent comment

Re:Ask HN: Anyone else feels the commoditization of real est... by sbrother on Saturday August 13, 2022 @12:03PM (#32451101)
Are there any financial products to help with this situation; ie allowing you to take out an $800k loan on the new house? Presumably this wouldn’t be any riskier for the bank than simply continuing to own the old underwater loan. Possibly less risky since the homeowner, living where they wanted to live, would have less incentive to simply walk away.
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Re:Ask HN: Anyone else feels the commoditization of real est... by bombcar on Saturday August 13, 2022 @12:41PM (#32451499)
The whole situation is confused; banks often have quite the ability to "go after you" for deficiency but in actuality they rarely do.

And in some states, such as California, on the original purchase loan they cannot; it's non-recourse.

But they sold your loan long ago, and trying to "do the math" and resell a new underwater one doesn't work.

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