BBC NEWS | Business | America's house price time bomb:
"Though banks can repossess and sell the homes of borrowers who stop paying their mortgages, under a legal quirk originating in the Great Depression of the 1930s, banks cannot easily pursue borrowers for any balance outstanding on the main mortgage on their homes.
Consequently, by walking away from her apartment, Ms Trainer has also walked away from the $200,000 loss on her property.
Her bank gets stuck with that."
--------------- And:
"The losses for the financial system from people walking away could be of the order of one trillion dollars when the entire capital of the US banking system is only $1.3 trillion. "
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And that makes it a really freakin' huge Whoopsie.
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