Millions of American homeowners are “underwater,” meaning that they owe more on their mortgages than their homes are worth. In Nevada, nearly two-thirds of homeowners are in this category. Yet most of them are dutifully continuing to pay their mortgages, despite substantial financial incentives for walking away from them.
Very interesting view on morals of defaulting on a mortgage.
People like there homes. I don't think it is just that easy to walk away from your house, even if you are getting ripped off.
ReplyDeleteVery interesting article, I like it when economics is applied to normative behavior and this article does a concise job of that.
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