>>>>When a private "hard working taxpayers" investment goes sour--he can't just go bankrupt & walk away!!<<<
Since when can't he just walk away? That's exactly what is happening here (I'm assuming you are referring to a house as his "investment")--the ones who can't make the payments are defaulting and walking away, sticking us w/ the bill.
the ones who can't make the payments are defaulting and walking away, sticking us w/ the bill.
No--he is actually still on the hook for the balance of what that house gets sold for vs what he owes, plus fees, processing fees, acumulated interest, & cost of selling !! the interest that he has paid to the bank is gone, the amounts he put down, the loan originating fees, the processing fees, the points etc, etc that were either paid up front or were processed into the loan are gone--his credit is also ruined---but the bank kept all the fees, the interest, etc--& is now going to sell that defaulted loan & property to the Gov (us)