Newsflash: So why isn’t there price gap/short sale insurance for mortgages?

So this idea hits me while we’re all laughing ourselves silly at this guy: https://www.reddit.com/r/RealEstate/comments/6hnhkx/what_are_my_options_if_i_buy_and_then_the_market/Why ISN’T there an insurance policy that offers to cover the gap between the loan amount and the value of the property if the value drops below the amount owed? Similar to how cars have gap insurance.Now I know people will say “because real estate generally appreciates!” But we’ve seen otherwise during 07 and things like mortgage swaps were created to hedge against this.But why isn’t there something offered to homeowners that allows them to have a piece of mind so they won’t ever have to face a short sale?Food for thought.

Read more at https://www.reddit.com/r/RealEstate/comments/6ho0w2/so_why_isnt_there_price_gapshort_sale_insurance/?utm_source=ifttt

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