[quote=TheBreeze]
You’re missing the point. A business decision involves two willing parties who are each risking their own money. What we have here is one party, the FB, who took out a low-cost loan at the expense of an unwilling party, taxpayers through an unscrupulous intermediary, crooked banksters.
[/quote]
In all fairness, things have changed quite significantly in the last few months.
Personally years ago when I bought my place, the banks were not being bailed out by taxpayers. Two willing parties made an agreement: I pay, or I give the property back to the bank. That’s it. We agreed and signed a contract. Nobody forced anyone’s hand, and we both fully understood the terms of our agreement.
For me, that is entirely a business decision whether I keep the house or hand it back. I fail to see how it could be anything else.
Now, fast forward to today.
It’s extremely unfortunate the government/taxpayers/world are now backstopping bank losses. And I personally would need to sit down and ponder the moral issues handing in the keys now. I would still argue that under the original terms of the agreement, it is still a business decision.
Loan modifications, etc are in themselves an entirely new agreement but in no way changes the original.
