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Ridiculous analogy. In the reverse, anyone that has gotten divorced can not be trusted to honor their word on a contract.
Breaking a contract has consequences. Each is separate and apart from another.
Not precisely, how about anyone that institutes the divorce. Not everyone who is divorced, are the ones who broke their promise. It could very well have been the other party who broke their word, and they forced the marriage into a divorce.
The banks do not deserve sympathy when they engaged in the greatest scam of inflating housing costs, getting subsidies from government,, falsifying loans, rejecting working with the owner to help keep the home, getting interest on mortgages paid and them re-claming the house again to resale. Not to mention getting a bail out from you and me when the market bubble burst.
Let me tell you why the cost of a home continually went up. The builders raised their prices every time the interest rates were knocked down a point. Everyone has a share in what happened here in this country. I am merely saying that if the banks go under, WE go under.
To place blame is one thing , to correct this enormous climate of what has happened in the housing market is another. Many people were at fault right down the line including the buyers , sellers, speculators , flippers, banks, investors ,realtors , and ratings agencies and our congress and overseers are all connected in this outcome of what could bring us down economically. The American people will be the losers in all of this. The american people have money in those banks or supposedly the banks have the peoples money .
Funny how ethics are tied to lower and middle class financial actions while rich people laying off people and outsourcing jobs to make themselves richer is "just business".
If it makes financial sense for you to walk away from your house..walk away. Who gives an F that some clown on an internet forum tells you it's unethical? The guy who made a commission on the bad mortgage or the guy who sold your mortgage in a bundled asset or the bank that got bailed out by the government because they bought that bad asset....and made millions.. those are the crooks. For some reason you never see right wing blow hards going after these guys, go after some nursing assistant in Florida making $30K a year.
What if the home loan was done by your local credit union, that has 2 branches, and they not only did the loan, but hold the loan, and your payments go to the credit union?
Not all mortgages are done by huge money grubbing entities. Some are done by small institutions interested in doing right by their members.
Besides, even IF your loan was by one of the large entities, are you saying it's ok to give your word, and then break it, just because you don't like the current circumstances you find yourself in?
Every homeowner who does not pay their mortgage is in default.They signed the loan agreement , took the money and purchased a home and it is this reason of non-payment of all these loans that makes the banks go under. It will be placed on the shoulders of all Americans. The bailout money is to
fund the banks with money of all those depositors who put money into the banks and the depositors money was lent out to buyers purchasing homes. It is also the American peoples monies that was used to purchase homes. The stock market also has taken money out of the Americans who gambled on the housing market . Many financial losers are the American People.
What if the home loan was done by your local credit union, that has 2 branches, and they not only did the loan, but hold the loan, and your payments go to the credit union?
Not all mortgages are done by huge money grubbing entities. Some are done by small institutions interested in doing right by their members.
Besides, even IF your loan was by one of the large entities, are you saying it's ok to give your word, and then break it, just because you don't like the current circumstances you find yourself in?
If your loan is through a credit union, you should make some attempt to talk to them before bailing out on your mortgage...for ethical reasons.
If your loan is through a big bank, you should still go to them and see if they will adjust your mortgage, but you should have no hesitation to bail on your mortgage if it is the right thing for you and your family, as you can guarantee that not a single CEO at one of those banks would hesitate to leave you footing the bill for their own excess and greed if they could get away with it.
The legality of an action has no bearing on whether it is ethical.
Is it more ethical to go on food stamps and keep paying for a home you can't afford, or to cut your loses and move on with your life, surrendering the home to it's rightful owner, the bank?
It is not unethical in my opinion to bail on a mortgage for a house that was wildly overvalued that you can no longer afford, no. To do it simply because you can and you don't want to pay it anymore is unethical, but not illegal.
So let me get this straight from the perspective that a home purchase is simply a financial investment.. You, and many others on this thread, feel that if an investor (in this case the home buyer) ends up losing value on their "investment", that they should just stick the losses to the banks/lenders? Why stop there though? Why not expand that to all sectors of investing, like playing the stock market? I mean, why should my family suffer negative consequences because I made a poor investment choice? I should be able to realize the gains if the property/investment increases in value, but the banks should have to foot the bill for any losses, right??? RIGHT???
I am an unrepentant capitalist. So... Yes. The banks aren't kind people investing in your well being, they are gambling in the hopes of turning a profit on you.
BTW, "Home" is the community where you live. A house is property. In the past 20-30 years, realtors have been using the buzzword "home" to describe an asset.
I am an unrepentant capitalist. So... Yes. The banks aren't kind people investing in your well being, they are gambling in the hopes of turning a profit on you.
BTW, "Home" is the community where you live. A house is property. In the past 20-30 years, realtors have been using the buzzword "home" to describe an asset.
A bank takes in depositors money and loans it out on purchases such as homes, cars , etc to make an interest fee. If the principle is not paid nor the interest who is the biggest loser?That money lent is the depositors money.
The FDIC is there to protect the peoples money to a degree. 250 thousand for each depositor is guaranteed by the FDIC. The government backs the FDIC. The government is the taxpayer.
Would paying off a 30 year mortgage in 10 years cut your effective interest rate paid by a third as well?
Example:
30 years @ 6.125% paid off in 10 years would be the same for the borrower as paying 2.042% for that 10 year period.
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So let me get this straight from the perspective that a home purchase is simply a financial investment.. You, and many others on this thread, feel that if an investor (in this case the home buyer) ends up losing value on their "investment", that they should just stick the losses to the banks/lenders? Why stop there though? Why not expand that to all sectors of investing, like playing the stock market? I mean, why should my family suffer negative consequences because I made a poor investment choice? I should be able to realize the gains if the property/investment increases in value, but the banks should have to foot the bill for any losses, right??? RIGHT???
