Even Plutocrats are getting out

US time bomb
Even the wealthy hand back negative equity homes

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.

Ms Trainer says she feels no moral obligation to go on paying a loan on a property that is going to go on losing her money. She says her friends support her decision.

With this kind of talk, let's see if we'll still have banks by the end of the year...

Incidentally, this may be a fad I should see into taking up. Just walk away and let the bank eat the loss? Stick it to them banks. That made it possible to buy my apartment. And it's furnishings. And a whole buncha crap before that.

It's the banks fault we're in this situation anyway, isn't it? They're the ones who lent any amount to anyone with a pulse. Then they conned other people into buying our mortgages to make a quick buck. They're the ones that should suffer. And it's not as if it's all roses if I walk away - my credit will be ruined for years. Which means I should be able to buy another house in about 6 months.