In Spain, they have what is called “recourse loans” this means if you default on your home mortgage the bank can come after you not only your condo, but for everything, your car, wages ect..
Here in Boston if you don’t pay your home mortgage, the bank can take your Boston condo back, but in most cases that is it.
Does recourse loans prevent foreclosures? The audio clip below debates the issue. Please note the first few minutes are also interesting regarding Madoff and our debt to China.
Click here to Listen to the Podcast