Bill said on November 27th, 2007:These landowners, who owe $250,000 on an asset now worth $160,000, and are paying taxes on top of it, owe nothing to the bank. Many will walk away. And the bank will be holding the bag. The supply-demand imbalance is still pretty wide.…
On Feb 28th, 2008, Bill launched the business “You Drive Away”:
What a business model. I hereby announce the launching of my own service, called ‘You Drive Away.’ Clients wishing to take advantage of You Drive Away’s services need to follow our patented two step process:
1) Send You Drive Away a check for $800. That is nearly 20% cheaper than our main competitor.
2) Drive away. This is faster than walking.
On Jul 29th, 2008, Professor Susan Wachter (one of the two images above), Wharton School of Business said this:
“The dangers are extraordinary.”
This BBC article references $1 trillion in losses. It doesn’t say if this is $1 trillion in additional losses or part of the existing estimates. In either case, the true bank losses will be closer to $3 trillion.
1 comment:
My guess is that the only thing stopping more of these upside-down mortgage holders from walking is their irrational fear of having a bad credit rating.
Mine is excellent, but if I trashed it, I doubt if I'd lose any sleep, I'd just learn to deal in cash, like everyone else with a bad credit rating.
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