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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (155592)	3/30/2020 5:10:24 PM
From: Lazarus	Read Replies (1) \| Respond to of 218447

*re: <<explained to the kids at dinner table the unsuitability of debt / debtor state but am actually not convinced personally since the debtors might be bailed out>>* In the former housing crisis many with homes that were way underwater were given incentives to remain - including drastically reduced interest rates. Then those who had good credit and were able to purchase homes were given incentives, rebates, etc. to go forward. I had a friend who bought a bank owned home back then and the bank paid closing cost so he was able to get in with around $10k down and then he got $8k back. In general, I would teach my kids the same about debt, with some exceptions. I tell them when buying a home to buy all they can afford with a little down as possible, so as to shift all the risk to the lender. The original (purchase money) loan on a home in California is non-recourse, which means if the borrower cant make the payments the banks only remedy to cure default is to foreclose ( and they cannot go after you for the difference between the selling price and the loan they made). ...oh, and on an FHA loan the down payment is only 3.5% (plus closing cost -- try to get seller to pay)