Walk Away From Your Mortgage! ⇒
8 January 2010, mid-morning
People are socialized in all sorts of ways to make the idea of walking away from your mortgage a moral failing, when really it should simply be a financial decision.
This link was found via Tyler.This is a post from my link log: If you click the title of this post you will be taken the web page I am discussing.
This is funny.
Anyways, would it be better if people were also socialized to think that entering into a contract they will never be able to satisfy is also a moral failing?
by rishi on January 8 2010, 11:14 am #
Probably. I’m sure they thought they could swing it. Also, why would the professionals at the lending institution give them money. For many people that would suggest that the bank thinks they are capable of handling the mortgage. It’s not really the same situation.
by ramanan on January 8 2010, 11:58 am #
First, I think the term “professional” is being misused here. These are not doctors or engineers.
Second, it’s because they live life one fiscal quarter at at time.
by rishi on January 8 2010, 12:38 pm #
Ha..ha..
by stacy on January 8 2010, 2:17 pm #
That’s right.
The housing market is so fickle, and it only takes a year for things to flip dramatically.
Toronto is a perfect example…where even a crap little house is worth upwards of 400 grand.
If you can convince people that walking away from their investment even if they don’t have to, that’s even more lucrative control for the banks.
Why should you reap the benefits of your investment when the banks can steal it from you with your consent.
by radmila on January 9 2010, 11:06 am #
There are all kinds of posts on this topic on various finance/economics blogs:
Back and forth between McArdle and Interfluidity:
The New Breed of Deadbeats
Strategic default and the duty to shareholders
Personal Finance
Norms of credit
Salmon:
The next real-estate bust
by mk on January 9 2010, 7:41 pm #
Another counter-argument to this article.
by ramanan on January 11 2010, 2:30 pm #