Question by G-Man: SECURED Loan: Since a loan is secured by property does that limit collections to the current value?
Whether it is worth either more or less, does that matter, since it was accepted as “security” for the loan?
Best answer:
Answer by irishcrm317
If you owe more than the property is worth, you still have to pay that amount.
Example: you buy a house for 100,000 and have a 90,000 mortgage loan. Value of house decreases to 80,000, you still ow 90,000.
Give your answer to this question below!
No, you are responsible for the balance of the loan no matter what how the value of the collateral fluctuates.