Talk of The Villages Florida - View Single Post - "No Bond" is promoted in home sales. But what's the real savings?
Thread: "No Bond" is promoted in home sales. But what's the real savings?
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Old 11-26-2023, 10:02 AM
retiredguy123 retiredguy123 is offline
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Quote:
Originally Posted by BrianL99 View Post
That's exactly what it is. Essentially, an assumable 2nd Mortgage (that's in a 1st position, like taxes). It's good to see someone post a clear, concise and accurate answer to the OP's question.
The difference between a mortgage and a bond is that a mortgage is a personal debt against the property owner. But, a bond is a debt against the property itself, not the owner. So, the owner can be sued for non-payment of a mortgage, but they cannot be sued for non-payment of the bond.

Also, I don't think an appraiser or a bank considers the bond when calculating the collateral or loan value of the property.