>It depends what state you're in and what type of loan you have.
>
>In California (area with one of the biggest problems) if it is a first mortgage it is considered a non-recourse loan and they can't pursue the difference. But if it was a second mortgage or refinanced they can. Even our Gov't is helping these people out by not counting the releived debt taxable (2 or 3 year window on this, normally it would be)
>
>Of course those moron bankers deserve all they get

Problem is, one way or another the people who still pay the bills (who weren't trying to make fast money from the real estate pyramid scheme) get shafted in the fallout.

Either it will come out of our pockets from a government bailout (likely) or from increased fees and interest rates by the banks or both (most likely).



>
>Bob
>
>>Interesting article here
>>
>>http://newsvote.bbc.co.uk/1/hi/business/7529277.stm
>>
>>I didn't realise that in the US you could walk away from a debt like that and not be pursued. So people are walking away from paying for their house because it doesn't make business sense any more
>>
>>In the UK people who hand back their keys because they can't afford their house anymore are routinely pursued if the sale of the house by the bank fail to raise the full amount of an outstanding loan.
>>
>>
>>Nick