>> Most people want to stay in their homes. But if they own more than they are worth, and jobs go away, so do the people.
It has nothing to do with jobs going away. If you believe it does, you do not understand the matter.
When real estate crashed in the mid-80s in Dallas, I saw many, many people who had excellent jobs walk away from homes they had bought. Even when there is SOME equity in them, if it isn't enough they'll walk.
Good, decent people who pay their bills like clockwork, can rationalize walking away from a mortgage that didn't work out as planned on the basis that it is a 30-year commitment and, while they may feel badly about it, they go, "Crap, I'm not slaving to pay this off for 30 years. Not doing it." Frankly, relieving them from the tax liability, as the bill does, just increases the incentive for them to walk away.
The decision has nothing, at all, to do with whether they lose their job. |
