Results from nonlinear time-history analyses of wall-frame structural models indicate that the condition of vulnerable foundations -for which uplifting and reaching the bearing capacity of the supporting soil can occur before yielding at the base of the shear walls- may not be necessarily detrimental to the drift response of buildings under strong ground motions. Analyses also show that a soil-foundation system can inherently have deformation capacity well in excess of the demand and thus act as a source of energy dissipation that protects the structural integrity of the shear walls.