Don’t risk more than 20% on real estate down payment

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

DEAR BOB: You recently suggested paying no more than a 20 percent cash down payment and never paying all cash for a house or condo. The reason you gave is unforeseen circumstances, such as finding the condo association is broke or you bought near a toxic waste dump. You say if a buyer puts down 20 percent that is all you lose. Are you suggesting the homeowner walk away from the mortgage? – Jack R. DEAR JACK: No. I didn't suggest a homeowner walk away from his/her mortgage obligation. In most states, a lender who loses money on a foreclosure sale can seek a deficiency judgment against the defaulting homeowner. However, lenders rarely do so because of the expense (unless the defaulting borrower is very wealthy). Purchase Bob Bruss reports online. The primary reason to make a maximum 20 percent down payment when buying a house or condo is to avoid tying up a major portion of your assets, especially if you are retired. If you are a multizillionaire, be my guest, take the risk, and...