Your Economy (No Politics)

[skono4]

dumping the keys and walking away is no longer an option for the most part...
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The people we're talking about ran out of options when the market dropped and their adjustable rate loans with discounted teaser rates reset to the market price plus back interest in the case of negative amortization deals. I read up some on the new bancruptcy laws and I think you're right that those people with substantial income may be required to make some restitution payments to the lenders even after they are evicted or foreclosed on. Hard to say what percentage of the bad debt can be recovered through these means, especially considering litigation and collection agency fees. Many others with less ability to pay will simply be absolved of their obligations as a matter of efficiency. Banks can't afford to chase down low income families for a couple hundred bucks a month so those cases will be a complete loss.