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My 10-Year Odyssey Through America’s Housing Crisis

By Patrick following x   2018 Apr 15, 6:56pm 985 views   3 comments   watch   nsfw   quote     share    


https://www.wsj.com/articles/my-10-year-odyssey-through-americas-housing-crisis-1516981725

Twelve years later, little about my life remained the same. I’d left Alabama to take a job at The Wall Street Journal. I was no longer married. Pierre, the dog, had died of old age. But I was still sending mortgage payments each month to a bank in Alabama.

I would have sold the house long ago, and in fact I tried. But when the U.S. housing market collapsed in 2007, the property’s value fell far below the amount I borrowed to buy it.

Walking away was never an option. I’d signed papers promising to pay the money back and I intended to do so one way or another. In case my moral compass ever needed a shake, laws in Alabama, as in many states, allow lenders to pursue the difference between the mortgage debt on a property and what it fetches in a foreclosure sale.

For much of the past decade that number kept growing. At one point, it would have been nearly $70,000.
1   lostand confused   ignore (0)   2018 Apr 15, 7:23pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Patrick says
In case my moral compass ever needed a shake, laws in Alabama, as in many states, allow lenders to pursue the difference between the mortgage debt on a property and what it fetches in a foreclosure sale.


Wow-I did not realize that. I thought in the US mortgages were non recourse-they could just grab your house. You learn something new everyday!
2   Patrick   ignore (1)   2018 Apr 15, 8:06pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

I did not realize that it varies by state.

I thought that the first mortgage was non-recourse, but if you refinance at all, even taking out $1, then it becomes recourse and they can go after all your other assets. But it seems that is the law just in California.
3   HEYYOU   ignore (25)   2018 Apr 15, 8:37pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Do you know why birds fly upside down over Alabama?
There is nothing worth shitting on.

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