Many banks and mortgage lenders are lamenting about changing attitudes of Americans towards
home loans. Though no evidence
is presented so far, most of these lenders are of the opinion that Americans are now deliberately defaulting on their home loan installment, as a way to cut losses. Most of these homebuyers bought the properties at very high prices with the object of selling them at profit. In many cases, lenders provided almost 100 percent finance. As the property prices have dipped by almost 30 to 40 percent, it makes more financial sense to have the property foreclosed. Effectively, the lenders will have to absorb the losses, both on prices and the interest. It may only be the paranoia of lenders because they have not presented any facts and figures so far. Voicing such fears may, however, alert some unscrupulous homebuyers, who may just opt for foreclosure.