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.
CONTEXT(Help)
-
The Global Financial Crisis »The Global Financial Crisis
▲
Potential consequences of the financial crisis? »Potential consequences of the financial crisis?
▲
More financial institutions will collapse »More financial institutions will collapse
▲
Financial institutions will suffer further capital losses »Financial institutions will suffer further capital losses
▲
Financial institutions forced to write off bad debts »Financial institutions forced to write off bad debts
▲
Many homeowners will default on mortgage and loans »Many homeowners will default on mortgage and loans
■
People in negative equity can abandon the mortgage
+Comments (0)
+Citations (0)
+About