The double standards in foreclosure
beggarsâ€™ description â€“ the rich are allowed to default with impunity.
The borrowers with modest means who are walking away from their
mortgages are regarded as anti-socials while the rich are credited with
having taken a good financial move. There are obviously double
standards at play â€“ one for the rich and one for the ordinary
Compilation of data is showing that larger debts have a higher
probability to become delinquent during times of a financial crisis
that loans of relatively modest size. The difference in the size of
loans will highlight the treatment meted out to the wealthy on one hand
and to the general borrower on the other.
The general house owner whose means are modest, who opts for strategic default and decides to walk away from the house and mortgage
are considered to be anti socials while the same step taken by wealthy
borrowers is lauded to be a wise financial move. Thus the previous
economic position appears to be the yardstick for the judgment.
Read More: The Double Standards in Foreclosure â€“ Allowing Rich to Default With Impunity