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Walk Away From Your Mortgage!

Let the market work itself out. Sounds right to me.

Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work. But the housing collapse left 10.7 million families owing more than their homes are worth. So some of them are making a calculated decision to hang onto their money and let their homes go. Is this irresponsible?

Businesses — in particular Wall Street banks — make such calculations routinely. Morgan Stanley recently decided to stop making payments on five San Francisco office buildings. A Morgan Stanley fund purchased the buildings at the height of the boom, and their value has plunged. Nobody has said Morgan Stanley is immoral — perhaps because no one assumed it was moral to begin with. But the average American, as if sprung from some Franklinesque mythology, is supposed to honor his debts, or so says the mortgage industry as well as government officials. Former Treasury Secretary Henry M. Paulson Jr. declared that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator — and one who is not honoring his obligation.” (Paulson presumably was not so censorious of speculation during his 32-year career at Goldman Sachs.)

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if the banks actually

if the banks actually borrowed lawful money from there vaults, i would say to pay it back, but this funny money we all have to use....i say dont pay any of it and participate in it as little as possible, FRN's is how they steel our productive energy

Breach of contract

Not paying your mortgage is just a breach of contract. Nothing immoral about breach of contract. It is a business decision and the law provides a remedy to the injured party. In fact, there is a whole philosophical defense of breach of contract called "efficient breach" which says that not only is it not immoral to breach a contract when it doesn't make econimic sense anymore, it is beneficial for society as a whole for you to do so.

The one fly in the ointment is that anti-deficiency laws and bankruptcy laws make it impossible for the lender to get a remedy. But I say to hell with those crooks.

freakin' sociopaths like Paulson

telling us to be moral and honor our obligations...hypocrisy has no meaning to this scum.

When you get a home with a

When you get a home with a mortgage, YOU are not buying the home, the Bank is buying the home. then over 30 whatever years you are buying it from them through monthly payments. But it is the bank that purchased the home, and it is theirs up until you pay them that very last penny. If you walk away from the bank's home there is nothing immoral about that, in fact if there is anything immoral it is that the bank does not give you back the money that you have paid up to the point that you walk. And really even that is not really immoral because you agreed in advance that if you did not pay every penny that you would lose the home AND all the money that you had already paid into it.

But when you walk away from your home the bank still has the house that THEY bought. They are not out of anything, and in fact they have the their home AND all the money that you paid up till the time you walked away.

And further about Mr Paulson's statement that a home buyer is not honoring their obligaton, the home buyer does not have the obligations to pay the home off. The home honor is only obligated to pay off the home if the home buyer wants to take possession of it from the bank. But a mortgage clearly spells out that the home buyer has 2 options, one to buy the house, the other to walk away from it and lose it and all moneys previously paid. There is literally a walk away option built into the mortgage, therefore there is no obligaton to pay the house off, but instead paying the house off is an option of the mortgage.

"Ehhh, What's ups Doc?" B.Bunny "Scwewy Wabbit!"E. Fudd
People's Awareness Coalition: Deprogramming Sequence

Very logical

We have just been indoctrinated and shamed on to believing everything is our fault. Sometimes the ability to pay or not is beyond the buyers control. Often these days because the bank made a bad decision and even encouraged someone to buy even though they knew they would be on the verge or unable to meet the payments. The buyer is often convinced they can do it or are perfectly capable at the time and then things chang e wham ! They can't make it.


Sounds right to me

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