• cosmic_slate@dmv.socialEnglish
    31·
    11 months ago

    That assumes the house is auctioned for more than what is remaining on the mortgage.

    If this happens because you lost your job in a recession and local home values are down (or stagnant), you’re probably not walking away with anything. Then I think you’d have to account for any liens caused by delinquency, which would further reduce any proceeds

    Then add up the lost amount of money put in for maintenance+repairs in the time you’ve owned the house.

    If you’re in a market where rental rates are much lower than what you’d pay monthly on a mortgage, you’d probably be much worse off by this point.

    • MolochAlter@lemmy.world
      3·
      11 months ago

      If you’re in a market where rental rates are much lower than what you’d pay monthly on a mortgage

      Is there even such a thing?

      • cosmic_slate@dmv.socialEnglish
        1·
        11 months ago

        As weird and crazy as it sounds, yeah. Depends on your downpayment and a few factors, but if you’re just starting out, a decent chunk of the DC area has generally been cheaper to rent unless you’re for-sure sticking in the house for a while.

        • MolochAlter@lemmy.world
          2·
          11 months ago

          Wild. Here in the Netherlands any mortgage you can be approved for on a middle class salary will be 3/4 to 2/3 of the average area rent.

          Just by virtue of the fact that banks have stricter rules for income to mortgage payment ratios.