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Especially in the US, bankruptcy is the policy means available to individuals to reduce debt and save their  homes.  Very few bankruptcies in the US occur in which individuals lose their homes, and the reason most people file for bankruptcy is to save their homes (while escaping from their medical bills).
by santiago on Thu Oct 15th, 2009 at 10:33:07 AM EST
[ Parent ]
Just as long as you continue paying your mortgage, you won't lose your home in bankruptcy proceedings in the US, that is true.

But when people default on their mortgage they can get foreclosed and repossessed, and they will unless the bank has inexplicably (heh) misplaced the loan documents.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Thu Oct 15th, 2009 at 10:36:00 AM EST
[ Parent ]
Yes, this is exactly how it works in the US.
by santiago on Thu Oct 15th, 2009 at 10:42:33 AM EST
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