I predict the banks will push for legislation for quick paycheck garnishment—unless the people work in a cash only business, they’ll be paying off the loan anyway without owning the house.
Is there a guaranteed ‘seniority of debts’ w.r.t. people as there are in corporations?
I.e. generally corporations are required to pay off banks and senior bondholders before junior bondholders, convertible and preferred shares, and last, common stockholders.
Could a mortgage deficiency be considered “senior” to e.g. credit card debt?
Coudl one bank who has a mortgage deficiency against the FB force the bank of the FB’s credit card to turn over all payments made to the credit card until the mortgage debt is extinguished?
What about car loans?
Going after utility payments might be going to far…but could they go after rental payments if they’re deemed “too luxurious”?
