According to this NPR piece some mortgage regulations in Europe allow banks to pursue debtors further than in America. In Spain, for example, a woman kept on paying her mortgage by any means necessary because she knew that the bank could pursue any property she had and demand a portion of her paycheck if she walked away. In America, one can make a strategic decision to walk away, say if the house's value has plunged to the point where paying the mortgage does not make sense. When one walks away in America, one's credit history is ruined making further borrowing quite difficult if not impossible, but the bank cannot pursue you further. Would it be a good idea to implement the European approach in America?
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