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February 5, 2008 at 8:03 PM #148865February 5, 2008 at 8:03 PM #148938DaCounselorParticipant
I would be more inclined to call it stupidity as opposed to honor, Kelly. Our astute “investor” (characterizing a property that is negative cash flow from the get-go an “income” property is our first sign of who we are dealing with) throws down the morality card we have debated here for months. My advice to this person, having already acknowledged that they have made a bad business decision, is to start thinking long and hard about whether their priorities should rest with some over-reaching sense of obligation to their neighborhood as opposed to their own family.
Yes indeed, there is great “honor” in sinking increasing amounts of money into a bad investment while neglecting your childrens’ educational funds. That makes tremendous sense. Perhaps the children don’t even really need higher education, thus increasing the likelihood that they will perpetuate their parents’ fine investment decisions. Fantastic idea. After all, we don’t want to cause any problems for next door neighbor Bob’s refi or ruffle any feathers in the neighborhood.
This person’s circumstances are affected by the fact that the distressed property is, ahem, “income” property, which has certain legal implications relating to…walkability. Speaking more in generalities, then, I suggest that anyone who can walk with nothing but a damaged credit report must consider doing so if the alternative is financial ruin. Anyone who steers their own bus, family aboard, over the cliff when there is a way out is arguably an idiot.
And what of those, you ask, who do not face financial ruin but instead would like to shave a few hundred grand off their mortgage balance? I can hear the morality drumbeats grow louder on this one, but I’m not inclined to cast stones regarding someone’s business decision pursuant to a contract that if at all typical has provisions on point. Now will there be a macroeconomic effect of decisions to walk? Yes. Will I be affected in some way? Probably. But it’s certainly naive to believe that we have not been affected by the decisions of our fellow man/consumer/borrower/insured/etc over the span of time. This is no different.
February 6, 2008 at 11:50 AM #148764kellyParticipantThanks for all of the feedback – we ran a story this morning on voiceofsandiego.org about this concept and the You Walk Away company. Here’s a link.
kb
February 6, 2008 at 11:50 AM #149015kellyParticipantThanks for all of the feedback – we ran a story this morning on voiceofsandiego.org about this concept and the You Walk Away company. Here’s a link.
kb
February 6, 2008 at 11:50 AM #149033kellyParticipantThanks for all of the feedback – we ran a story this morning on voiceofsandiego.org about this concept and the You Walk Away company. Here’s a link.
kb
February 6, 2008 at 11:50 AM #149047kellyParticipantThanks for all of the feedback – we ran a story this morning on voiceofsandiego.org about this concept and the You Walk Away company. Here’s a link.
kb
February 6, 2008 at 11:50 AM #149119kellyParticipantThanks for all of the feedback – we ran a story this morning on voiceofsandiego.org about this concept and the You Walk Away company. Here’s a link.
kb
February 6, 2008 at 5:26 PM #148964nostradamusParticipantHi Kelly,
Thanks for the link. Can you write a story about financially responsible people who bought homes within a price range they could easily afford, and who now have significant savings yet are regretful due to the fact that the fed–to stave off a recession caused by fiscal recklessness– has lowered rates hereby devaluing the dollar while reducing bond and cd interest rates which in turn causes said financially responsible people to become so infuriated that they write run-on sentences?I think that would be a great story for which I have a lot of input. You might call it “Heads you lose, tails you lose” (i.e. if you overextended yourself with exotic loans you’re screwed, if you didn’t and you saved your money you’re still screwed).
February 6, 2008 at 5:26 PM #149220nostradamusParticipantHi Kelly,
Thanks for the link. Can you write a story about financially responsible people who bought homes within a price range they could easily afford, and who now have significant savings yet are regretful due to the fact that the fed–to stave off a recession caused by fiscal recklessness– has lowered rates hereby devaluing the dollar while reducing bond and cd interest rates which in turn causes said financially responsible people to become so infuriated that they write run-on sentences?I think that would be a great story for which I have a lot of input. You might call it “Heads you lose, tails you lose” (i.e. if you overextended yourself with exotic loans you’re screwed, if you didn’t and you saved your money you’re still screwed).
February 6, 2008 at 5:26 PM #149231nostradamusParticipantHi Kelly,
Thanks for the link. Can you write a story about financially responsible people who bought homes within a price range they could easily afford, and who now have significant savings yet are regretful due to the fact that the fed–to stave off a recession caused by fiscal recklessness– has lowered rates hereby devaluing the dollar while reducing bond and cd interest rates which in turn causes said financially responsible people to become so infuriated that they write run-on sentences?I think that would be a great story for which I have a lot of input. You might call it “Heads you lose, tails you lose” (i.e. if you overextended yourself with exotic loans you’re screwed, if you didn’t and you saved your money you’re still screwed).
February 6, 2008 at 5:26 PM #149247nostradamusParticipantHi Kelly,
Thanks for the link. Can you write a story about financially responsible people who bought homes within a price range they could easily afford, and who now have significant savings yet are regretful due to the fact that the fed–to stave off a recession caused by fiscal recklessness– has lowered rates hereby devaluing the dollar while reducing bond and cd interest rates which in turn causes said financially responsible people to become so infuriated that they write run-on sentences?I think that would be a great story for which I have a lot of input. You might call it “Heads you lose, tails you lose” (i.e. if you overextended yourself with exotic loans you’re screwed, if you didn’t and you saved your money you’re still screwed).
February 6, 2008 at 5:26 PM #149320nostradamusParticipantHi Kelly,
Thanks for the link. Can you write a story about financially responsible people who bought homes within a price range they could easily afford, and who now have significant savings yet are regretful due to the fact that the fed–to stave off a recession caused by fiscal recklessness– has lowered rates hereby devaluing the dollar while reducing bond and cd interest rates which in turn causes said financially responsible people to become so infuriated that they write run-on sentences?I think that would be a great story for which I have a lot of input. You might call it “Heads you lose, tails you lose” (i.e. if you overextended yourself with exotic loans you’re screwed, if you didn’t and you saved your money you’re still screwed).
February 6, 2008 at 5:36 PM #148969kewpParticipantKelly,
I think you should make a point that there is really no ‘moral’ obligation to service mortgage debt. Its a contract, the house is the collateral, so tossing the keys is part of the deal.
If the neighbors are so concerned about not blowing the comps, they can always incorporate and buy up all the foreclosure properties at an inflated price.
February 6, 2008 at 5:36 PM #149225kewpParticipantKelly,
I think you should make a point that there is really no ‘moral’ obligation to service mortgage debt. Its a contract, the house is the collateral, so tossing the keys is part of the deal.
If the neighbors are so concerned about not blowing the comps, they can always incorporate and buy up all the foreclosure properties at an inflated price.
February 6, 2008 at 5:36 PM #149236kewpParticipantKelly,
I think you should make a point that there is really no ‘moral’ obligation to service mortgage debt. Its a contract, the house is the collateral, so tossing the keys is part of the deal.
If the neighbors are so concerned about not blowing the comps, they can always incorporate and buy up all the foreclosure properties at an inflated price.
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