That really wasn't that bad as far as reddit goes. In spirit, he's somewhat correct: Mortgages are different in that the house is collateral. The things bought

That really wasn't that bad as far as reddit goes. In spirit, he's somewhat correct: Mortgages are different in that the house is collateral. The things bought with credit card debt [1] are usually long gone before bankruptcy strikes. In some cases, a forfeited house could actually be a net gain for the bank when a person defaults. The big problem now is that people will be losing 400K houses on 600K loans. [1] Or government debt.