The US, and I guess other countries as well, no longer have debtors jail so if there turns out to be a lot of homeowners who can no longer make their mortgage payments something will have to be done regarding bankruptcy eligibility.
Especially politically if there are bailouts of banks and/or mortgage companies. Not saying there will be or whether there should be any bailouts. Just that if the little guy, who maybe shouldn't have been allowed to buy to begin with, is left to continue paying even part of the debt after losing his home - there will be a big backlash.
Especially politically if there are bailouts of banks and/or mortgage companies. Not saying there will be or whether there should be any bailouts. Just that if the little guy, who maybe shouldn't have been allowed to buy to begin with, is left to continue paying even part of the debt after losing his home - there will be a big backlash.