Re: Walk Away From Your House by Jim Cramer
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Walking away will cause people to 'lose their deposits'. Even though the market has already taken many people's deposits
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Well? This is exactly what happened in the early 90's. The house was worth less than they paid for it. They owe more than the current worth. With a small down payment coupled with teaser rate/exploding mortgage waalking away is often a prudent strategy. Of course this just puts more pressure on the loaners.
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