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Question 1. Are mortgages in the US similar to options from the perspective of the homeowner? 1. No, because defaulting does not eliminate liability. 2.

Question 1. Are mortgages in the US similar to options from the perspective of the homeowner?

1. No, because defaulting does not eliminate liability.

2. No in recourse states, yes in non-recourse states.

3. Yes, because they can be sold by banks to Fannie Mae and Freddie Mac.

4. Yes, because people always have the option to default.

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