<html><body> <DIV>The car loan is a better deal for the lender.  If she defaults, not only can the car be repossessed but she is personally liable for a deficiency judgment as to the value of the loan. In California, and many states,  a home purchaser can simply walk away from the mortgage and not face a money judgment - although there may be tax consequences.  SR</DIV> <DIV> </DIV> <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid">-------------- Original message -------------- <BR>From: Doug Henwood <dhenwood@panix.com> <BR><BR>> Speaking of housing stories, I read one yesterday of a woman who was <BR>> taking out a $13,000 car loan to pay her mortgage. The low payment <BR>> was adjusting upwards, but since the loan was greater than the value <BR>> of the house, she couldn't refinance. <BR>> <BR>> Doug <BR>> ___________________________________ <BR>> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk </BLOCKQUOTE></body></html>