I am trying to understand the functioning of mortgage but I am having a bad time. I have been through many different types of concepts and calculations, but I still cannot get how exactly this works.
Say that I have $100,000 to buy a house in cash but instead I decided to get a loan. For instance, if I put down 20% of the value from my own pocket and get a 80% mortgage in a term of 30 years, and considering that a potential buyer appeared to me wanting to buy the property for $150,000 one month later, is it still possible to sell my property to him or her using the leverage I got from the lender?
Once, as far as I could understand, in the process of selling the lender will subtract my mortgage debt from the received money, but in a span of 30 years sometimes the debt can be much higher than the value of the property in the market, resulting in a very negative equity (like -300%).
And so in this case, considering that I could have paid in cash and benefited from +$50,000, I would have done the worst thing in all my life with now a debt for 30 years.
I am sorry for my ignorance, I need help understanding this.