Dec
14th
Mon
14th
Should I Pay Or Should I Go?
As peer pressure pushed people to buy homes that they could not afford reassured by rising prices, we are now about to witness an opposite social effect: people that are underwater deciding to purposely default on their mortgage, also because their friends start doing so.
That works in the US were mortgages are non-recurse debt. In most European countries the bank would come after all your and your family assets to recover their losses. That is also one of the reason why the real estate bubble was somewhat muted compared to the US; and also why European foreclosures are more painful.
Tags:
finance real estate
