alchemysa
Veteran Member
We've been hearing of course about the financial crisis in the US and in particular about all the problems with home loan failures. I never knew that in the US you have a system whereby someone can 'simply' walk away from a home and leave the bank with the home and the debt. Here in Australia the debt stays with you, so even if you can't maintain the payments and the bank takes back your home, you are still responsible for the full original loan. The only way out of it is the 'last resort option' of declaring bankruptcy.
I'm wondering if I've got this story straight, or is it that only some US home loans work under the system I described.
I can see 'positives' with both systems. 'Your' system certainly lets low income earners get into the market but perhaps there's less incentive to work out what you can really afford, and then fight to keep it when the going gets tough.
I'm wondering if I've got this story straight, or is it that only some US home loans work under the system I described.
I can see 'positives' with both systems. 'Your' system certainly lets low income earners get into the market but perhaps there's less incentive to work out what you can really afford, and then fight to keep it when the going gets tough.