Even if you can't afford the home you want, even if you can't or won't make the payments and even if you don't have a job. You don't have to be like those silly people that scrimped and saved and deprived themselves certain luxuries so they would have a down payment. Then they bought a smaller house then they would have preferred because they limited their purchase to what they could afford and still have a little left at the end of the month to plan for their retirement. And they have a little rainy day fund just in case something unexpected comes up they will still be able to make the house payment and follow through with their contractual obligation. No, you don't have to do that.
After you do buy a home, if the market goes down, you have the right to turn the house back to the bank. I mean just because you signed a contract to repay the bank loan, why should you have to accept the consequences of your decision to buy that house at that time for that price. You didn't know the market was going to go down and you should not have to make payments on a house that is not worth today what you paid for it. If you can't make a big enough profit, why should you have to stay in that house you should just be able to walk away and try again with another house.
If the bank doesn't want to accept the consequences for your choice, you have the right to go before a judge who will restructure the loan for you. You just tell the judge what you can pay and they will force the bank to "write off" the difference. Don't worry that the "write off" actually comes out of shareholders and 401(k) balances because you don't need a 401(k) you will have social security and Medicare to take care of your retirement expenses.
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