Quote:
Originally Posted by BadNick
If lenders implemented a loan qualification such that anyone who took a strategic default would not be eligible for another mortgage loan for some significant period, say 10 years, and then at higher cost, there would be more serious consequences for doing this.
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I like the idea, but in many places, people were getting loans for the cheap homes after the crash, and then walking away from the really high one.
I think the bank needs to take into consideration how underwater you are in terms of loan amount vs. value before issuing any other loans.
On a bigger scale, it might cause problems with having way too many renters being financially stable, yet unable to buy a home for 10 years. Then in 10 years, you will get a huge wave of people who have been saving lots of money (good), yet the market supply won't be there and prices will shoot up.