You cannot have it both ways

[Anonymous]

I think this is an interesting thread and felt I could contribute. Sorry it got so long.

I RESPECTFULLY have to disagree with anyone who tries to paint a homeowner who lives up to the mortgage contract that they signed as immoral. Immoral would be trying to weasel out of the loan payments while trying to keep the house because someone noticed that an i was not dotted properly by a secretary when setting up the contract. One who takes advantage of a contract that explicitly says, the money borrower can forfeit the house in lieu of repayment is in my opinion 100% living up to their agreement if they walk away and leave the keys. Absolutely nothing even remotely immoral about it.

Think of it this way – the value of the house has no bearing on anything after the document is signed. The contract says Joe will pay X dollars for X months and in the end Joe will own this house. (this is true if the house is then worth $1 million or $1). If Joe doesn’t pay, Joe loses the house, no matter what the value is. This is the agreement!

Imagine a world for one minute where for whatever reason, Joe’s home was being foreclosed upon and it was worth more than he owed. (just to illustrate a point – I know it couldn’t happen) You think the bank would refund the difference to Joe? No way, they’d live up their agreement and happily take Joe’s house instead of the money. Would there be anything immoral about it? No. The money renter (Joe) and money loaner (bank) agreed to this in the contract. It goes both ways.

Bottom line = there’s nothing wrong with a man’s handshake saying that he’ll live up to an agreement. If more people on this planet lived that way, it’d be a better place. I think it’s wrong to interpret that handshake to mean he’ll live up to something more.

That said, absolutely nothing wrong with helping a friend in need, if you have the means to do it. I have several friends who own several properties – I hope they all weather this storm OK. If I had the capacity to help any of them without jeopardizing my own financial future, I’d do it in a second. If they lose it all and end up renting a crappy apartment in a crappy part of town, they’ll still be my friends. I’ll feel for their families who have to live that way, but life will go on. These are very bright people who will probably come back with a roar in some other bull market. In many ways I envy the risks my friends took a few years ago. I just was not in a position to do so or I probably would have too. And had they timed things better, they might all be retired now – nothing immoral about that either…

The folks I feel for are those who were truly taken advantage of in one way or another. Either because they were too stupid to know better or they were in the wrong place at the wrong time. I feel bad about starving kids in Africa too, unfortunately anything I do (and I do what I can) is just a drop in the bucket…

I’ve learned a lot from many of the threads on this board and make these comments in only the most respectful manner.

[NotCranky]

Sandiego.
I think the hypothetical controls would be industry wide. They didn’t exist when you threw the dice. To this degree, yes the industry has contributed to your problem. On that point you make an interesting case.

[NotCranky]

Sandiego.
I think the hypothetical controls would be industry wide. They didn’t exist when you threw the dice. To this degree, yes the industry has contributed to your problem. On that point you make an interesting case.

[NotCranky]

Sandiego.
I think the hypothetical controls would be industry wide. They didn’t exist when you threw the dice. To this degree, yes the industry has contributed to your problem. On that point you make an interesting case.

[NotCranky]

Sandiego.
I think the hypothetical controls would be industry wide. They didn’t exist when you threw the dice. To this degree, yes the industry has contributed to your problem. On that point you make an interesting case.

[NotCranky]

Sandiego.
I think the hypothetical controls would be industry wide. They didn’t exist when you threw the dice. To this degree, yes the industry has contributed to your problem. On that point you make an interesting case.

[sandiego]

Actually, if a property is foreclosed on and someone buys it on the Courthouse steps for more than is owed on the loans (plus costs to collect), the homeowner would get the difference. Lenders are not allowed to profit from foreclosures.

If no one bids on it at the Courthouse steps and the foreclosure is perfected, the house can be put on the market with a clean title. If it sells for more at this point, the lender would get all of the proceeds.

[sandiego]

Actually, if a property is foreclosed on and someone buys it on the Courthouse steps for more than is owed on the loans (plus costs to collect), the homeowner would get the difference. Lenders are not allowed to profit from foreclosures.

If no one bids on it at the Courthouse steps and the foreclosure is perfected, the house can be put on the market with a clean title. If it sells for more at this point, the lender would get all of the proceeds.

[sandiego]

Actually, if a property is foreclosed on and someone buys it on the Courthouse steps for more than is owed on the loans (plus costs to collect), the homeowner would get the difference. Lenders are not allowed to profit from foreclosures.

If no one bids on it at the Courthouse steps and the foreclosure is perfected, the house can be put on the market with a clean title. If it sells for more at this point, the lender would get all of the proceeds.

[sandiego]

Actually, if a property is foreclosed on and someone buys it on the Courthouse steps for more than is owed on the loans (plus costs to collect), the homeowner would get the difference. Lenders are not allowed to profit from foreclosures.

If no one bids on it at the Courthouse steps and the foreclosure is perfected, the house can be put on the market with a clean title. If it sells for more at this point, the lender would get all of the proceeds.

[sandiego]

Actually, if a property is foreclosed on and someone buys it on the Courthouse steps for more than is owed on the loans (plus costs to collect), the homeowner would get the difference. Lenders are not allowed to profit from foreclosures.

If no one bids on it at the Courthouse steps and the foreclosure is perfected, the house can be put on the market with a clean title. If it sells for more at this point, the lender would get all of the proceeds.

[an]

All of these morality talk and honoring of mortgage contracts got me giggle for a second. American should be one of the last people to talk about honoring of contract when time gets tough or when things are not favorable. The reason I say this is because at least 1/2 of us don’t honor the contract most of us signed or will sign, which is, the marriage license. When things gets tough or when things don’t go our way, we get divorced. How is that any different than walking from a mortgage loan?

[an]

All of these morality talk and honoring of mortgage contracts got me giggle for a second. American should be one of the last people to talk about honoring of contract when time gets tough or when things are not favorable. The reason I say this is because at least 1/2 of us don’t honor the contract most of us signed or will sign, which is, the marriage license. When things gets tough or when things don’t go our way, we get divorced. How is that any different than walking from a mortgage loan?

[an]

All of these morality talk and honoring of mortgage contracts got me giggle for a second. American should be one of the last people to talk about honoring of contract when time gets tough or when things are not favorable. The reason I say this is because at least 1/2 of us don’t honor the contract most of us signed or will sign, which is, the marriage license. When things gets tough or when things don’t go our way, we get divorced. How is that any different than walking from a mortgage loan?

[an]

All of these morality talk and honoring of mortgage contracts got me giggle for a second. American should be one of the last people to talk about honoring of contract when time gets tough or when things are not favorable. The reason I say this is because at least 1/2 of us don’t honor the contract most of us signed or will sign, which is, the marriage license. When things gets tough or when things don’t go our way, we get divorced. How is that any different than walking from a mortgage loan?

[Author]

Posts