>So, about this housing bubble: Let's say I default on a mortgage and the
>bank takes the property, and after they sell the property, they only get
>half of what I owe them. What happens to the other half of the debt?
>
>All the best,
>
> John A
I seem to remember some years ago a couple I knew that were financing a home had an insurance policy built into the loan. That is to say that part of their monthly payments, a very small part like $8.00 a month, was a premium on an insurance policy that would pay whatever the difference was between the remaining loan balance and the properties resale price in the case of foreclosure. They were required to carry this insurance because they were defined as a higher risk than average or some such bullshit. Is there such a thing or am I remembering this poorly?
John Thornton