In many countries, if you don't pay your mortgage, you go to debtor's prison. I'm not advocating that sort of thing, but I'll bet buyers there think twice before jumping into something they know they can't afford in a "worst case situation"
Yeah they also have public stoning because someone committed adultery. come on, this is not the 1700s anymore. I blame greedy banks for the situation in the U.S. If the banks would have learned a little word called "no" rather than lets make a punt load of money. Ius like this Mr. Smith, you really cant afford this loan so we will hit you with a 13% interest ( cause your "high risk") 2 years goes by, Mr. Smith loses his job, draws unemployment, goes and sees a financial planner. financial planner says hey Mr. Smith you will be okay if you get out of your home. Mr. Smith asks how do i do that, financial planner says well you move out. Mr. Smith what will that do to my credit. Financial planner well your only 25, you will be free and clear by the time your 33.... Boom, Mr. Smith's property is foreclosed on. who's at fault? The dough head who financed Mr. Smith.... bottom line!!!!
Yeah they also have public stoning because someone committed adultery. come on, this is not the 1700s anymore. I blame greedy banks for the situation in the U.S. If the banks would have learned a little word called "no" rather than lets make a punt load of money. Ius like this Mr. Smith, you really cant afford this loan so we will hit you with a 13% interest ( cause your "high risk") 2 years goes by, Mr. Smith loses his job, draws unemployment, goes and sees a financial planner. financial planner says hey Mr. Smith you will be okay if you get out of your home. Mr. Smith asks how do i do that, financial planner says well you move out. Mr. Smith what will that do to my credit. Financial planner well your only 25, you will be free and clear by the time your 33.... Boom, Mr. Smith's property is foreclosed on. who's at fault? The dough head who financed Mr. Smith.... bottom line!!!!