On Dec 22, 11:42*pm, Home Guy wrote:
harry wrote:
So, what happens if you can't pay your mortgage? It sounds to
me that the borrower is worse off than in the UK or Canada?

You sell your house. *What's what happens.

What happens if your house is worth substantially less than the
money you owe?

That hasn't happened in Canada. *House prices here have not declined.
At worst, they've remained static over the past 2 or 3 years in most
markets. *In other markets, they have still increased.

Have a look at this document:

http://tinyurl.com/2uoxzef

Look at the table of numbers on the last page (page 10).

You'll see how the year/over/year percentage change in house prices have
changed since 2000 for various western countries.

The UK has had some major Yo/Y figures (8 to 15%) during 2000 to 2004,
followed by a crash of -4 to -10% during the years 2008 to the present.
Far larger increase and decrease than even the US has seen, but the US
has been in negative territory since 2006.

Japan has been in negative territory for this entire decade.

Ireland is seeing MAJOR negative Yo/Y numbers in 2008, 2009 and 2010
(-10 and -20%).

Spain has been negative since 2008. *Australia has been posting erratic
numbers this decade, almost all positive, but very high numbers lately
(10+ percent this year).

France has been posting negative numbers since 2008, and Germany for
this entire decade (what's going on there?).

So, why do you think it won't happen in Canada?