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How about stepping up and being responsible and paying for the mortgage. The financial institution shouldn't be punished for one of the few cases where they actually do something nice for someone. Pay your mortgage. You have a home.
Y'know, I've been thinking about this "breach of contract=immorality" lately. About six months after my son entered into a 2 year cellular phone contract, his employer required that he use his employer's blackberry. His boss told him he could use the business phone for personal calls. He has little to no use for two cellular phones.
The penalty for terminating the contract is significantly less than the monthly fees incurred for the remaining 18 months. So, is it immoral of him to terminate the contract? Or, does this qualify as a sound financial decision?
I used to be in the camp that had an issue with people walking away from their mortgages. Not anymore. It really is a business decision. An arrangement was made by two parties that spells out exactly what the terms are. Those terms include what happens if the borrower defaults. I don't see it as morals or ethics.
I'm sure I will be condemned to burn for eternity for saying this, but I'm OK with that. To each his own.
This really is a new way of thinking - and it makes sense. Everything evolves, even public perception - and that's a good thing!
About six months after my son entered into a 2 year cellular phone contract, his employer required that he use his employer's blackberry.
Did his employer require he personally buy a blackberry and sign a contract? I'm guessing.... no. So he did it on his own, because he wanted one. Then he got one for free. He can cancel and pay the early termination fee and put the phone on ebay. Its not immoral. Cell phone companies dont care, thats why they charge the fee.
If you're not going anywhere keep doing what you're doing. I think I'm underwater a bit on my home, but since I'm not moving, it doesn't really matter to me.
Sounds like me..I know my condo is "underwater" as well by roughly $60K but the reality is, I can make the payments and I still need somewhere to live so I will keep paying!
It's not like the OP didn't put any money down - it was a substantial amount. I know someone in a similar position who put down around $150K and is now $200K underwater -- I have a feeling a lot of the neighbors around there are even in worse shape...it's a little different to judge when it hits home. So to speak..
My house is under water. I like where I live. I hate my bank.
I'm going to keep paying because I don't want to move.
I'm not going to keep paying because it's the "right" thing to do.
I'd love to screw the bank, but I can't because the large banks
are not banks any more. They are loan processors and servicers.
They don't have any skin in the game.
It was banks not being banks that caused the mess.
There are a number of people that should hang for this mess, but
they will, instead, award themselves another large bonus this year.
This isn't a moral debate, it's a business decision.
I was just talking to my wife yesterday about how some lower and middle-income Americans drank the kool-aid and became corporate lackeys for banks and financial institutions during the housing downfall, and this post sums that up just brilliantly.
An investment is a pure business decision and IF walking away and ruining your credit for x years and losing x on your down payment was by far the better long-term fiscal decision, regardless of necessity, you better believe that's what that same bank and financial institution would have done (and has done), and if a homeowner wants to do that too, they have my full support.
Furthermore, it's just rude. The OP didn't come here to receive some sort of childish chide because you wanted to get on your soap box.
Add me to the list of people that believe individuals should act in much the same manner that a bank or corporation acts every single year.
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