> That's not a scam; it's no different from buying a house on a mortgage.
When I buy a house on a mortgage, I (not the house) end up with the debt, and I don't get to transfer any of the assets associated with the house to myself in a way which makes them not subject to repossession if the mortgage isn't paid.
So, yeah, the deals we're talking about are very different.
Personal mortgages are non-recourse in most states. You can get whatever value you can out of the house, then walk away, and the lender gets to keep the house but they can't come after you.
> Personal mortgages are non-recourse in most states.
12 out of 50 is not "most".
https://www.forbes.com/advisor/loans/recourse-loans-vs-non-r... ["In all but 12 states, home mortgages are also considered recourse loans. If a borrower is underwater on their mortgage—meaning the outstanding debt is greater than the value of the home—the bank may not be able to recoup all of its money from a foreclosure sale. In this case, the bank can get a deficiency judgment for the difference between the debt and the foreclosure sale price and then garnish the borrower’s wages or file a lien against other assets."]
When I buy a house on a mortgage, I (not the house) end up with the debt, and I don't get to transfer any of the assets associated with the house to myself in a way which makes them not subject to repossession if the mortgage isn't paid.
So, yeah, the deals we're talking about are very different.