If you were "upside down" on your mortgage, would you walk away? (regular, ratings)
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On the other hand, nobody complains when businesses file bankruptcy and screw over all of their vendors, shareholders, and customers.
Again,what does morality have to do with making business decisions?
The lender gets the property that they were happy to loan money on,so no loss for them...unless the property was overvalued and there was some sort of shenanigans going on....
BS. Wrong is wrong and it doesn't matter if it's an individual walking away from their debt obligations or a corporation. We all end up paying for it in the end.
A mortgage is a contract that a home buyer signs agreeing to the terms of repayment on their loan. It's not a contract stating that one only needs to continue to pay if the home value doesn't plummet. I get that banks did a poor job vetting potential borrowers for ability to pay, but ultimately the borrower is obligated by the contract they willingly entered in to.
As a disclaimer, I'm not lumping those who fell on financial hardship into the above, but if a person CAN afford their payments then they should continue to abide by the conditions of their contract. Nowhere does your mortgage agreement guarantee a home's future value.
A mortgage is a contract where the lender agrees to loan x amount and the property in question is used as collateral to secure the loan.
If the borrower defaults(there is no 'you must be sincere and in trouble' clauses) the lender gets the property back.
Where this is now suddenly an issue is because the lenders don't WANT the property,and have managed to get other homeowners to somehow think it is wrong to default.
In good times the lenders didn't mind I bet,when the home prices were going up....
Again,what does morality have to do with making business decisions?
The lender gets the property that they were happy to loan money on,so no loss for them...unless the property was overvalued and there was some sort of shenanigans going on....
In life and in business, honoring a debt is morally correct.
It's not so much about those who lost a job or died or became terminally ill and now cannot pay, it's about those who choose to sign mortgages and now are seeing it as a good financial move to walk away from them.
So if you are deadbeat(Defined as a person who cannot pay his bills) for a good reason it is okay to default????
This would then be emotion and feelings clouding logical decision making.
You signed a contract that LEGALLY COMMITS you make those mortgage payments as long as the deed to the house is in your name. If you don't want to make the payments then sell the house and pay the bank if you are underwater.
People don't want to take responsibility for the fact they made a bad business deal.
Why did you forget the part about forfeiting the property if you default?
In life and in business, honoring a debt is morally correct.
Really?
You then do not believe in bankruptcy laws,or reduction of a prison sentence for good behavior or anything else where the debtor doesn't pay back everything in it's entirety?
There are usually consequences for walking away from a business deal, such as getting sued. If the person is willing to deal with the consequences of walking away from a mortgage i.e. bad credit or the inability to get other consumer loans then so be it. But the fact remains you signed a contract and you broke it.
Where do you get the idea walking away from a house has no consequences?
What seems to annoy some is that they feel 'cheated' because someone else did something they are unwilling to do...
I would walk away. I don't find that to be immoral either. You can't blame people for changes in market forces.
I disagree; you can blame them if they OVER extended themselves by buying something they should not have been able to afford if they were performing even marginal due diligence on their budgeting.
You purchase a home knowing the sub prime note you've signed is going to come due in 5 years and then your payments are going to balloon but you buy it anyway "assuming" the value will continue to rise but, ooopsy, the sun fell out of the sky so now we're upside down on our financing.
Walking away is just another manifestation of what's wrong with society today; NO responsibility and consequences for having made a bad decision. It doesn't take fortitude to walk away from a debt; just the opposite is true. It takes fortitude to fulfill an obligation. If you can make the payments you should not be walking away period!
Your lifestyle goes into the crapper and you have to relinquish the lease on your "beemer" and buy a hyundai pony, tough! You can't afford to eat twice a week in four star restaurants and are now obliged to clip coupons to shop with, tough! Vacation expenses have to be curtailed and you're now spending your week off in the back yard, instead of Mauii, tough! Walking to the store instead of hopping into the car for the 3 block trip, tough! Fast food out of the question and you're actually having to plan your weeks eating around the specials at the Winn Dixie, tough!
These little sacrifices are called consequences and they are the logical results of making foolish choices. Man up!
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