- Joined
- Feb 4, 2015
Literal award winning economist doesn’t know how mortgages work




When you buy a house, you usually have to take a mortgage from a bank. When you are approved, the bank LOANS you money which is used to purchase property. Your name is on the deed. You own that property. It’s the same as if you bought something on a credit card. It’s yours, but you used money loaned to you to buy it.
However, if you decide to stop paying the mortgage, the bank has every right to come in, seize it from you and sell it to recoup their losses from loaning you money.
When you sell your property, the money that comes in is used to pay off whatever is remaining on the mortgage(s) attached to the property before coming to you.
However, if you decide to stop paying the mortgage, the bank has every right to come in, seize it from you and sell it to recoup their losses from loaning you money.
When you sell your property, the money that comes in is used to pay off whatever is remaining on the mortgage(s) attached to the property before coming to you.
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