Lip Kitton. wrote:
Likewise, a mortgage contact includes stipulations regarding rights of either party to terminate the contract.
The house is collateral. Additionally, the particular state determines if the the loan is recourse or not.
What exactly is the problem? And why are you inconsistent in your comparison?
You're right, actually, the house serves as collateral in the event of non-payment. The contract does outline that the buyer is SUPPOSED to pay the lender, and in my opinion they have a moral, if not legal (I'm no contract lawyer) responsibility to do so. Defaulting incurs all sorts of peripheral expenses that cost society as a whole.