Having spent many, many years in business, it is astonishing to me how easy it is to snooker the average American into believing that there should be some different (moral) rule to be applied to the individual as opposed to a corporation. Reference the recent Supreme Court ruling on campaign financing. American corporations now have a seemingly unlimited First Amendment right. And, when they (usually an individual or a small group of individuals) get into trouble in business and decide to write off their creditors, Chapter 11 of the bankruptcy code sits there on a shining hill for them to invoke, literally without penalty, to rise again, and stiff another group of creditors in serial episodes. Our country privatizes profits and socializes losses, and does a marvelous job of convincing individuals that they just should think that they can’t do what the big boys do. Major, I mean MAJOR, banks walk from commercial mortgages whenever it makes sense to them financially. Since they are treated as individuals under the law for most purposes, what is the difference between them and a private “individual”? There are times and circumstances (the most recent largely of the banks own making) which may lead individuals to make life decisions which are no less important for them than for a corporation. Get a “life” and stop worrying about the “moral” circumstances of individual mortgage foreclosure, voluntary or not!
It is not just making the payments if you can still afford to. It is that you are spending money on a house worth much less than you paid. You will never get the money back. You can not sell the house for more in the future, much less is more likely. You can walk from the house, and then buy one down the street and save a lot of money. The bank should refi and encourage you to stay.
Stealing is a crime. Walking from a mortgage is neither illegal or a crime. That analogy is miles off.
12 days ago when the thread ended…or so I thought…I pretty much lost interest and have moved on. If anybody wants to participate in this resurrected thread then great, go for it. I however, am dropping out.