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I had the impression (from the last financial crisis) that if prices go down, home owners just mail the keys to the bank and walk away. Assuming they have litt
by incompatible 9y ago
I had the impression (from the last financial crisis) that if prices go down, home owners just mail the keys to the bank and walk away.
Assuming they have little equity to start with, of course.
- rainbowmverse 9y agoI get the feeling this was written about more often than it happened. A lot of journalists were trying to justify their salary with ad views while the economy was in free fall.
- Godel_unicode 9y agoDo you have data or any sources to go with this feeling?
- deleted 9y ago[deleted]
- lamarpye 9y agoIt would be nice if the article provided some data.
- pault 9y agoFine, but those people are not going to be getting another loan any time soon.
- ajross 9y agoThey are, actually. The market is hot again, and banks aren't idiots: they know that people pay their mortgages before other debt, even if they have a foreclosure in their past. Walking away from an underwater loan (which is a rational decision that connotes good decisions in the future) doesn't actually hurt your credit in the same way that getting behind on your credit cards does (which is evidence for poor money management skills).
- smsm42 9y agoIt's not that simple. Bankruptcy or foreclosure ruins your credit and you have still to live somewhere.