I never got when he asked his wife on the phone, "did you get the 425k for the house?"
She said "no 380k" he says "with the equity gone you'll only make 10k"
That doesn't make sense, here in Canada when you foreclose your house to the banks, you get ALL your equity back!
I wonder how much equity they did put into the house, maybe 350-370 at that point NEVER sell, always foreclose to the bank, and they'd be sitting on 350k!?
Doesn't say they foreclose, says they SOLD. Big difference. They bought for $425K and sold for $380K. Loss is a loss.
shareThey said all the equity was taken out, must've meant in terms of the house's value when they purchased it, and that they'd make $10K from it, so they must've bought it for $370K.
shareshe had out a HELOC on the house. that would need to be paid. at 380k selling price she only netted 10k. equity does not represent the difference bw purchase price and sell price. it is the difference between the mortgage and market value of the house. this conversation above is completely incorrect. they did not necessarily buy the house for 425k either. the CAD example is nonsense as well.
shareI didn't say $10k was the equity, I just assumed it was the difference between the buying and selling price since that determines what one "makes" from buying/selling a house. If "all" the equity was gone, the bank(s) who were owed the HELOC plus the mortgage (assuming there was still one) would get the whole sale of the house and they would've "made" nothing. So I assumed when they said "all the equity" they meant the equity that was available at the time they bought the house and that the house had gone up in value since.
share