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Equity Assignment | Homework For You

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Suppose Kate buys a house for $100,000 using a downpayment (equity) of $20,000 and a mortgage of $80,000 where mortgages have limited liability i.e. an nonrecourse clause that she can leave the house without paying her debt in full if the house is worth less than her debt. Suppose that it is costless to buy and sell houses and the interest rate is zero. CLICK …

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