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Laura

If The Uk Had Non-recourse Home Loans

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I've been trying to get my limited brain around this scenario.

How different would British attitudes to bricks & mortar be if when credit binges finished & values dived one could walk away from house and debt?

There may be little point in Canute like denial of value if you could hand the keys over without comebacks, but would the mind set still be prevalent?

Would Hyacinth Bucket say to her lender: "You valued it, you can have it!"

Or would she drop into personal failure, what-will-the-neighbours-think?!, mode?

The debt would not follow you but lack of credit worthiness would so unless you had a pile saved you could not pick up a bargain repo.

I can easily imagine there being a 'Mortgage Payers Union' & a mass strike in payments, or adjusted to Halliwide data.

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I've been trying to get my limited brain around this scenario.

How different would British attitudes to bricks & mortar be if when credit binges finished & values dived one could walk away from house and debt?

Then there would hardly be any credit available and that which was on offer would cost an arm and a leg, why should the bank take all the risk whilst the customer reaps all the profit?

The US banks only lent because the govt. forced them to by holding them to ransom over their licences if they didn't have enough risky loans to losers on their books, and that opened to floodgates for HPI and the rest is history as we know and loathe it.

See: http://www.lewrockwell.com/dilorenzo/dilorenzo125.html for more, or just google 'acorn mortgages forced loans'.

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