Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse

Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by aobdev on Tuesday March 21, 2023 @10:09AM (#35246317)

Mortgages are typically issued as non-recourse loans. This may not be true for HELOCs or other risky equity loans, but usually your lender can’t seize your home unless you haven’t been paying monthly.

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by _huayra_ on Tuesday March 21, 2023 @10:39AM (#35246847)

I'm pretty sure HELOCs can be called any, iirc, but I'm not sure if fail to pay the call means they put a lien on your house or force you into foreclosure.

When people say "you should buy real estate as an investment because you can't live in your brokerage account" and then do crazy stuff with their equity that they wouldn't even dream of when investing (e.g. Boglehead investors who HELOC for some net negative remodel) it really blows my mind...

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by cudgy on Wednesday March 22, 2023 @05:23AM (#35258651)

HELOCS cannot be called, but they can be frozen, preventing further borrowing, or have their borrowing limits reduced.

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by djbusby on Tuesday March 21, 2023 @10:26AM (#35246638)

Foreclosure takes many months.

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