debt deflation

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sat Jul 27 15:49:40 PDT 2002



>> Interesting, because there's no upside to the bank other
>> than the accrued interest.
>
> Accrued on what?

The loan that they gave the owner.


> Wouldn't they also have equity they have in the home when the
> owner dies to look forward to (if the value goes up)?

Nope, if you move or die, the loan (and accrued interest) becomes due and payable. Any upside belongs to the estate; any downside (if it was an FHA-conformant loan), is payable by FHA.

/jordan



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