I am curious about all of these people who have stopped paying their mortgage and are still living in their house. Is this really a popular phenomenon? Who are these people? And are they really spending their mortgage money on Outback Steakhouse dinners and new purses?
Maybe I’m just naive, but I have a hard time seeing this being the huge phenomenon that it is portrayed here on this board. I’m sure there are a few deadbeats that actually do crap like this, but the way some of you describe it makes it sound like PF Changs would be out of business if it weren’t for these people. That seems unbelievable to me. I think that PF Changs is staying in business due to people who don’t want to live without the ‘life of luxury’ that they got used to during the boom years. People who are still paying their mortgage, but are still racking up the debt on their credit cards — not deadbeat mortgage holders.
I know that if I was in their situation and I knew that I could be kicked out of my house at any moment, I wouldn’t be blowing my savings on nice dinners and flat screens. I’d be saving like a madman.
So can someone with more knowledge on the subject explain whether this is a true phenomenon, or whether people are using it for dramatic effect in their arguments?
