2006-10-05 15:30:03 · 5 answers · asked by Jungtao07 1 in Business & Finance ➔ Renting & Real Estate
only if you foreclose...
2006-10-05 15:41:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Not the lender. If the value of the home decreases, the amount of the loan stays the same. The loan is money that you borrowed, the home is only the collateral. If the loan was for $100,000 and the house price fell to $50,000, you would still owe the $100,000.
2006-10-05 15:33:21 · answer #2 · answered by kny390 6 · 3⤊ 0⤋
On a interest only loan you would be liable to pay back the money that is owed to the bank, But lets be real here realestate is the safest investment on the market. Why do you think there are so many people in the mortgage industry. Even if the proberty value dropped it will come back up and even go higher than what you owe. EX Donald Trump!!!! How do you think he made millions. He buys real estate when the market is down and holds onto it unitll the market goes back up and then sells.
2006-10-05 16:26:40 · answer #3 · answered by karrie r 2 · 0⤊ 2⤋
Clue: the lender NEVER loses.
2006-10-05 15:37:43 · answer #4 · answered by Anonymous · 1⤊ 0⤋
You do, and the lender does when you default
2006-10-05 16:29:28 · answer #5 · answered by kingstubborn 6 · 0⤊ 0⤋