comments

People in negative equity can abandon the mortgage

US mortgages attach to the house not the person; so by handing in tthe keys someone in negative equity ceases to be liable for the outstanding loan—intensifying the risk to the mortgage suppliers when house prices are plummeting.

RELATED ARTICLESExplain
⌅
The Global Financial Crisis
⌃
Potential consequences of the financial crisis?
⌃
More financial institutions will collapse
⌃
Financial institutions will suffer further capital losses
⌃
Financial institutions forced to write off bad debts
⌃
Many homeowners will default on mortgage and loans
■
People in negative equity can abandon the mortgage
□
Wave of option adjustable rate mortgage deafults to come
□
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (0)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip