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by Negitivefrags
1330 days ago
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Yes. This is how you get wrecked in the housing market. This is because buying a house is taking a risk. The question is just who is taking it. In 2008 my mother had her equity completely wiped out due to the exact situation you describe. Underwater mortgage, unable to afford the interest, forced to sell at a loss, zero net worth at the end after paying off all her debt. On the other hand, we didn't suffer the 2008 banking crisis and overall the economy was basically fine with only a minor recession, mostly due to worldwide conditions. |
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