Monday, December 8, 2008

Ouch! Borrowers Keep Defaulting After Mortgage Modification

Voltron says: No duh. Economists like to pretend that they don't know
why this is happening. Yet there is a term for it, "ruthless default",
if you have a non-recourse loan you effectively have a put option. If
the house is worth less than the motgage, it is irrational not to

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