tag:blogger.com,1999:blog-33399132.post6448297620823886029..comments2024-03-04T08:09:21.453-08:00Comments on Richard's Real Estate and Urban Economics Blog: Why aren't there more foreclosures in Europe?Richard Greenhttp://www.blogger.com/profile/02161226214739034402noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33399132.post-38961580182584436532011-03-09T05:42:49.626-08:002011-03-09T05:42:49.626-08:00In the UK all domestic mortgages are recourse thus...In the UK all domestic mortgages are recourse thus giving the homeowner every incentive to sit tight and ride out the downturn if house prices fall. The social security net might be more substantial than in the US but probably not by as much as thought. Perhaps more importantly house price swings are rarely as severe as in the US simply due to the chronic shortage of building land and population density. Except in truly exceptional circumstances, a finite supply of land will cause prices sooner or later to stabilize and then rise.<br /><br />In France all mortgages are non recourse but there, unlike in the US, mortgages are extremely difficult to obtain for the simple reason that the financial institution has so much to lose!!!m_ukhttps://www.blogger.com/profile/05768889302057850830noreply@blogger.com