Unbelievable the amount of times I hear people suggest the same problem will happen in Aus. NO it wont - at least no where near that extent. The laws are totally different.
You can walk away from your mortgage in the US and hand back the house and that is it - all done. So if your house value drops below your mortgage you may as well. The only thing keeping you there is the hassle of moving and/or love of the house.
This is NOT the case in Aus. If you default on your mortgage here the bank will take everything you own until they get their money back or if you don't own enough will charge you to your grave until they get it. So people only default on their Aus mortgages if they genuinely have no other option.
