Quote:
Originally Posted by irv
The A/H, to this day, has not corrected the original sold price. 
I know very little about the big house crash in the U.S., other than to say I heard about it, but did houses not sell, money exchanged hands, and did the people/new owners not move in before it crashed? |
Well, lets remember when you a buy a house without your funds and use a mortgage you really didnt use your money, plus you never really 'owned' the house, the bank did. Banks had no reason to lend 250k to people with no income but they did anyway and the people with no income had no ability to afford the loan unless they flipped the house or they got a second and third mortgage to pay off the first mortgage which they were able to get from a rising housing market (due to other banks giving money to other new homeowner buyers with no ability to pay) Thus money did exchange hands, but not the homeowners money but a banks money which ultimately led to many banks going out of business.
Thus moving in doesnt mean anything as they didnt own the house but again the sale price was registered in the market. On ebay past sales are shown all the time even when payment is not received.
Saying an item is 'sold' doesnt mean money exchanged hands, it means a legal obligation was there to pay for it.