All Forum Posts by: Tyler Richard

Chris, That makes much more sense. Thanks for your excellent explanation.

The question merely spawned from thinking about the nature of a foreclosure. If the property being foreclosed upon reduces in value below what is currently borrowed, the lender would loose the ability to effectively recover the outstanding balance. I wanted to make sure that there weren't loans out there that provide protection to the lender against market fluctuations by requiring that the borrower maintain equity within a certain percentage of the remaining balance on the loan. If such a protection doesn't exist, then it raises a second question from me: During the 2008 housing crises, how were borrowers being foreclosed upon if they were still making their mortgage payments from rental income? Thanks for this discussion and your quick responses.

I would like to know if a lender can foreclose on a property or call a loan or require an influx of cash if the loan for the property is upside down? I've seen several articles online about negative equity, but if the borrower continues to make payments, can the lender request the borrow to bring the equity and loan amount equal again? Any input on this subject would be great.