Landlords don’t care if your rent is sustainable for you in the long term. They have nothing to lose if at one point you can’t afford it anymore, someone else will.
Banks on the other hand care very much if you’ll be able to pay your loan in full. Even with the house as collateral, it’s much better for them if you just paid your loan instead of them having to deal with all that.
They only get to force the sale of the house to recoup their loan, you get to keep the extra from the sale. House sells for $300k, you owed $250k you walk away with $50k and the bank gets their money back.
Landlords don’t care if your rent is sustainable for you in the long term. They have nothing to lose if at one point you can’t afford it anymore, someone else will.
Banks on the other hand care very much if you’ll be able to pay your loan in full. Even with the house as collateral, it’s much better for them if you just paid your loan instead of them having to deal with all that.
“they get the house if you don’t pay” really isn’t so great after you’ve look at what they actually get for those houses.
Generally, people don’t get foreclosed on when their house looks super fancy and well maintained.
They only get to force the sale of the house to recoup their loan, you get to keep the extra from the sale. House sells for $300k, you owed $250k you walk away with $50k and the bank gets their money back.
Also debt is an asset for banks. Having people in debt for 30 years is better than having people in debt for 10 years and then selling their house.