[quote=temeculaguy]
Also, there is no way to get the wife “at arms length” even if the house and loan is only in one spouse’s name, community property and community credit. You could divorce her on paper then go into default as an individual but my guess is that few women will agree to a paper divorce to preserve credit because they will suspect you are just looking for an easy divorce with no court battle or alimony. Since alimony can never be renegotiated after the ink is dry (child support can but not alimony or asset division) I imagine there will be a few news stories of one spouse duping the other and you won’t see this happen very much after that. Come to think of it, it is kinda ingenious. [/quote]
Come to think of it, that might be good advice for that divorcing couple of the other thread 😉
I agree with Peter, it’s not what people do at the individual level, it’s what upside-down homeowners will do on the aggregate will count. They will create their own bailouts.
