“1. Honor your commitments. It’s a contract and your word.”
That’s exactly it. Walking is honoring your commitment. By giving the lender your house you’re doing just that — honor your commitment. Foreclosure is written into the contract so you’re simply activating a provision of the contract.
Business is business. Why throw good money after bad? Businesses make that practical decision all the time? Why can’t individuals do the same?
It sucks more to be a slave to your house than it sucks to move. I’ve seen on Craigslist that some people sell all of their appliances and fixture before leaving. Nothing illegal or immoral about that — it’s their house until they have to give it up.
Lenders were stupid for not leaving themselves a cushion. Now they just need to pay the price for their bad decisions. It’s the cost of doing business. Anything else is simply a transfer of wealth from workers to the financial institutions.
