The Law of Unintended Consequences

The Law of Unintended Consequences

The Law of Unintended Consequences states that the unintended consequences of an action will overwhelm the intended ones. The classic example is the bypass, built to relieve traffic congestion on the main road, that attracts new development and with it more traffic, resulting in two congested streets instead of one.

So could there be a little unexpected impact on the home foreclosures do to the dramatic changes in bankruptcy laws passed by the fascist Bush regime

            Houses are left behind to pay car, credit bills

 

Cash-strapped consumers with costly loans are changing priorities as home values fall.

Sandra and Thomas Floyd figured they'd live in the north Minneapolis home they've owned for 23 years until the day they died. But now they're joining the ranks of homeowners across the country who are keeping their credit cards and the keys to their car, but letting the house go.

"Who wants to pay the mortgage company and still have nothing to show for it?" said Thomas Floyd, whose loan now far outweighs the value of his house.

Foreclosure used to be considered a last resort. Fearful of the financial and social stain that came with losing a house, homeowners did whatever they could to make payments.

But falling home values combined with costly subprime loans are forcing an increasing number of cash-strapped homeowners to question their priorities. Scrape together monthly payments on a house that's now worth less than the mortgage, or skip that payment but remain current on credit card debt and other bills and try to start anew?