Once upon a time there was a man who lived under very heavy negative equity. The man had been sick and in the hospital unable to work. When he returned home, the eaves of his mortgage balance hung way out over the property value of his house, and his lost wages and new medical bills mounted against him. His home was upside down in value, and very uncomfortable to live in as he struggled to make payments on the mortgage loan. One day his friend asked, “Why do you not short sell your place?” and the man replied: “I would never sell myself short!” and he went on his dreary way, toiling mightily to make his payments. Next, the man’s neighbor came to him, suggesting the same thing, but the neighbor was met with a similar response. Finally the man’s mother came to visit, and she saw what a terrible time he was having making payments on a mortgage loan that greatly exceeded the property value. His mother said to him, “Sonny, you need to short sell this place and buy one you can afford.” “Why would I short sell myself?” he asked. “Not yourself,” she replied, “short sell your […]
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