Thanks, sdr, for clearing this up. It’s quite amazing that lenders don’t push harder. Maybe they figure the sellers won’t pay even if they can afford to, and would walk away rather than participate in the loss (which is probably true).
An interesting fact: among the major economies, only the USA has no recourse mortgage loans. It also has an expensive and slow legal system, which makes it not worth it going after a borrower (even if the lender were allowed to).
To be honest, I can’t see who in their right mind would invest in mortgages under these circumstances. Ummm… oh yeah, I know: you and me and the rest of the taxpayers…
