2011-10-02

More deflation mechanics

Mish Shedlock has a post about deficiency judgements. Go there to read it all, I just want to pick out a snip from an article on the post. House is Gone but Debt Lives On; Expect Huge Surge in Deficiency Lawsuits
Silverleaf says its collection efforts are limited. "We are waiting for the economy to somewhat heal so that it's a better time to go after people," says Douglas Hannah, managing director of Silverleaf.
Investors know that most states allow up to 20 years to try to collect the debts, ample time for the borrowers to get back on their feet. Meanwhile, the debts grow at about an 8% interest rate, depending on the state.
Debt haunts the economy. If people borrow money, it might be to pay off their debt...

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