ST Alpha - "That's only the case if it's an investment property instead of a personal residence." (Reading a Post)

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That's only the case if it's an investment property instead of a personal residence.

Posted by pmb (aka pmb) Feb 20 '09, 13:52

If you live there it doesn't matter if the value drops until you try to sell. If you're hoping to flip the house and the value drops someone might walk away, but in either case the scenario you describe is where payment is no longer being made so it's not the drop in value that causes the default.

Responses:

[deleted] 9
- It's the not making payments that is the default, not the drop in value. - pmb Feb 20, 13:55 7
  - [deleted] 6
    - But you did say or insinuate that the drop in value causes forclosures, to the point that the bank initiates it - oblique Feb 20, 14:01 5
      - [deleted] 4
        
        Making payments is purely a cash flow issue. The value of your assets is a balance sheet issue. They're not the same. - pmb Feb 20, 14:12 2
        
        [deleted] 1
        
        Seriously Jack, you're all over the place on this. - pmb Feb 20, 14:19
        
        so? -- nm - oblique Feb 20, 14:09
- What? If my home dropped in value, I wouldn't stop making payments because of that -- nm - oblique Feb 20, 13:55

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That's only the case if it's an investment property instead of a personal residence.

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