What has to change is people’s attitudes. If you enter into an obligation honor it, do not look for loopholes to weasel out of it. As a midwesterner by birth, it is something I see time and time again having lived in CA now for 26 years. Be it a wife, a dog, a kid, as soon as something falls out of favor on a short term basis too many look for the exits. Why not return to a time when a man’s handshake meant something. I personally would be the first person to continue to pay my mortgage even if there was a way out during a huge value drop, why? Because that is the agreement I made at the time for a 30 yr commitment. It is not my neighbors fault, the lenders fault, George Bush’s fault, if my house drops in value. IT IT MINE even though I do not care. Daytrading houses has never been a long term viable business and never will be.
I do not look to blame someone else for my decisions EVER. Anyone who does should be ashamed of themselves. I would also venture to guess there are few who do that who ever become wealthy, it is just a mindset. Focus on being successful at what you do, not on how to take advantage of someone else. Root for good things to happen to others, not bad things to make you feel better about your own situation.
Surely there have been situations where lenders have done some terrible things, and I have no sympathy for them either. However, you have to accept that the PPT is doing what they are doing for the overall good, and a few scoundrels are going to be saved. Do not spend negative energy on this, it is how the world has always worked, and will always work in the future.
I have several good friends with 7 figure new worths, and not one of them would try and take advantage of a bank in this fashion. They do utilize tax and other business loopholes etc.. but that is far different than walking away from a mortgage you are fully capable of paying, because your poor little condo has lost value, you are just never going to get anywhere if that is how you look at things. Maybe many people here just cannot afford to buy homes, so they hope for this horrible crisis to accomodate that. I would bet my life that the crisis you root for will ruin your life if it happens financially regardlesss of whether you are renting or are an owner. Unemployed people don’t buy homes no matter how cheap they are.
One last thought as an example of the mindset I refer to. I recently gave someone some money to help them pay their bills, because it was the right thing to do. It was not a loan. I did not root for them to get foreclosed so I could buy their house out from under them for a firesale price. Help someone occasionally who needs it, don’t root against them to elevate yourself. It will make you feel better than rooting for your neighbors house to decline 28%, if it doesn’t go see a doctor.
I am sure the boos for this post have already started.
