Wednesday, Feb 03, 2010
The one Time I wish we were American
New York Times: No Help in Sight, More Homeowners Walk Away
More Americans walking away from
“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”
Posted by the number cruncher @ 11:11 AM (1021 views) Add Comment
8 Comments
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1. will said...
If the banks are allowed to default on their debt obligations then so should the borrowers. What goes around......
2. inbreda said...
it's the only way the market will find the true value of a home. Like he says - why not rent a better place for less and lose nothing in depreciation?
3. nomad said...
Maybe our system in breeding more responsibility will end up being more solid and dependable.
This does, of course, assume that lessons have been learnt.
4. alan_540 said...
If UK citizens could walk away from debt like Americans are able to then our crash would probably already have happened regardless of government intervention and we'd be back to reasonable prices again.
5. alan_540 said...
I remember one of the Tory chancellors saying that unemployment and high interest rates were a price worth paying - was it Lawson? - and thinking then how ruthless and uncaring that was. But... maybe it would be good to get the pain over and done with so that people can start living their lives again. Is Brown right to keep borrowing to "invest in jobs" to engineer a soft landing but at a cost to the next generation in terms of repayment of that spending or is it right that the generation (us) that got up to our eyeballs in debt take the pain (unemployment and repossessions)?
6. fjcruiser said...
It is quite understandable to see that most people in neg equity in the US (and that's a lot) would be better off walking away from their property which may never recover in price during their lifetime and become tenants at the fraction of the cost.These people should have never been homeowner in the first place (at least the sub prime borrowers) so it will not matter to them that their credit rating will make them un-elligible for a homeloan ever again.This trend has statred in the US and I am sure will be tempting for quite a few in the UK too.
7. Crunchy said...
6. fjcruiser
Agenda 22. Slowly, slowly, as with all things.
8. Yoss said...
Wow! What better way to regulate reckless lending... If things get real bad your "borrower" might just walk away. No such luck in the UK..you took the debt.. you own it.