[AnimalMuppet]

> Also, critically, if due to catastrophe you abandon your $100k home and buy another $100k home in another place, your move cost $200k.

I don't think that's right. Let's say I "own" a $100k home, and have a $100k mortgage. I walk away from that house, buy another $100k house with another $100k mortgage. At the start, I have a $100k asset and a $100k liability, for a net of zero. After, I have a $100k asset and two $100k liabilities, so I have lost $100k.

Alternately, let's say I own my $100k house free and clear, and have another $100 in the bank, for total assets of $200k. I abandon my house (writing the value down to $0), and buy another house for $100k. Now I still have the $100k house, but nothing in the bank. My total assets are $100k, so I've lost $100k.

In no scenario have I lost $200k.

[woofyman]

> I walk away from that house

The bank sues you for the 100k unless you live in a non recourse state. In that case, the feds consider that forgiven 100k income and you’ll owe taxes.

>In no scenario have I lost $200k

The median US house price is 200k not 100k.

[AnimalMuppet]

> > I walk away from that house

> The bank sues you for the 100k unless you live in a non recourse state. In that case, the feds consider that forgiven 100k income and you’ll owe taxes.

My scenario assumed you still owed the $100k. If you live in a non-recourse state and just walk away, you're probably not going to be able to get a new mortgage.

> > In no scenario have I lost $200k

> The median US house price is 200k not 100k.

gascan's example was with $100k houses.

[SamReidHughes]

In one case you've spent $100K and have a house and in the other, you've spent $200K and have a house. That represents a difference of $100K.