Source: EconLog
by Jon Murphy
“There’s a common trope among people who have collateralized debt that, until the debt is cleared, they never truly own their property. For example, the bank holds the mortgage, and if mortgage payments aren’t made, the bank can seize the house. The trope says that the ‘pay to stay’ nature of the loan means the bank truly owns the house, not the person who purchased it using their mortgage. Despite how common this trope is, it is incorrect. It fundamentally misunderstands the legal nature of ownership.” (05/28/26)
https://www.econlib.org/econlog/the-bank-doesnt-own-your-house