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What if you look at it from the other perspective? Sareitha Sedai Send a noteboard - 12/10/2010 09:00:20 PM
This is an issue I have been wondering about lately. Not for personal reasons because I am not upside down in my house. But is it immoral to walk away from a home and leave the bank stuck with that devalued house even if you still have the ability to pay? Does it make sense to keep paying a $400K mortgage on house that is now worth $250K? The bank would feel no moral obligation to take one one on the chin like that for you.

Is it fair to expect people to act against their own best interest for the good of society and then have society not be willing to help them more?

Are we be played the fool by thinking we should follow a moral code but then not demanding that the banks follow that same code?

I don't know the answers to those questions, which is probably why I find them interesting.


Say you buy a foreclosed home from the bank that writes the mortgage. For simplicity's sake let's say you buy the home for $250,000, finance 100% of it, and that's the appraised value of the home.

In five years you are still making mortgage payments. The home now appraises for $325,000. Is it moral for the bank to tack that extra $75,000 onto the remaining loan principal?
If you are from Betelgeuse, please have one of your Earth friends read what I've written before you respond. Or try concentrating harder.

"The trophy problem has become extreme."
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Is walking away from a mortgage immoral? random thoughts - 12/10/2010 04:45:43 PM 1368 Views
Just as a contract is a two way street - SilverWarder - 12/10/2010 05:12:09 PM 869 Views
do we have a moral obligation to society? random thoughts - 12/10/2010 06:00:17 PM 864 Views
It's a good question SilverWarder - 14/10/2010 02:41:21 AM 778 Views
Sort of have to disagree... Antigone - 13/10/2010 02:52:07 AM 813 Views
That's not true actually SilverWarder - 14/10/2010 02:35:43 AM 762 Views
Of course it's immoral. Sareitha Sedai - 12/10/2010 05:13:16 PM 840 Views
But does one sided morality work? random thoughts - 12/10/2010 05:38:56 PM 959 Views
You asked about the morality of walking away when the borrower still has the ability to pay. Sareitha Sedai - 12/10/2010 07:31:10 PM 760 Views
A company or organization cannot act morally or immorally? I strongly disagree. *NM* Legolas - 12/10/2010 07:50:42 PM 386 Views
No, it cannot. However the individuals making the decisions for the company can. *NM* Cannoli - 12/10/2010 08:48:23 PM 328 Views
If banks can not behave in moral manner why should people be expected to behave in moral manner? random thoughts - 12/10/2010 08:07:56 PM 832 Views
I'm not absolved of my obligations based on the bad behaviors of others. Sareitha Sedai - 12/10/2010 08:25:33 PM 737 Views
but who you owe obligations to is a factor random thoughts - 12/10/2010 09:03:04 PM 793 Views
Because it's their moral obligation. Morality is not a trade, you act morally because it is right Cannoli - 12/10/2010 08:47:41 PM 924 Views
you also use reason and logic to decide where your loyalty rest random thoughts - 12/10/2010 09:16:51 PM 821 Views
You have not explained how it IS the banks' fault Cannoli - 15/10/2010 01:30:10 PM 856 Views
That's the only kind of morality there is! What the hell is wrong with you? Cannoli - 12/10/2010 08:15:55 PM 785 Views
nothing wrong with me but I think you are off your meds again random thoughts - 12/10/2010 09:34:33 PM 780 Views
Re: nothing wrong with me but I think you are off your meds again Cannoli - 15/10/2010 02:50:49 PM 1277 Views
well I really can't argue with the wrong is wrong end of story belief system random thoughts - 15/10/2010 05:40:22 PM 980 Views
A contract isn't a promise; it's a legal agreement. *NM* Ghavrel - 12/10/2010 06:25:24 PM 405 Views
Which is why contracts have to be pages and pages long and combed over by bloodsucking lawyers. LiterateDog - 12/10/2010 06:39:18 PM 817 Views
I would agree with you if contracts didn't provide for breaking them. Ghavrel - 12/10/2010 07:33:15 PM 675 Views
Hrm. Sareitha Sedai - 12/10/2010 07:35:38 PM 883 Views
did you take a personal oath in front of god and your loved ones to pay the loan back? *NM* random thoughts - 12/10/2010 08:09:07 PM 394 Views
Let's assume we're talking about a marriage where no such oath was taken... *NM* Sareitha Sedai - 12/10/2010 08:10:54 PM 408 Views
if there is no oath of fidelity then straying would not be immoral *NM* random thoughts - 12/10/2010 08:40:53 PM 381 Views
It's not immoral to break the marriage contract. Ghavrel - 12/10/2010 08:19:50 PM 942 Views
I don't see that as the flaw in my logic. Sareitha Sedai - 12/10/2010 08:37:52 PM 840 Views
Re: I don't see that as the flaw in my logic. Ghavrel - 12/10/2010 09:00:00 PM 932 Views
also random thoughts - 12/10/2010 09:37:38 PM 787 Views
That makes no sense whatsoever. Tim - 13/10/2010 11:38:06 PM 907 Views
That must be why they have you sign something called an agreementory note *NM* Sareitha Sedai - 12/10/2010 07:33:32 PM 405 Views
Exactly *NM* Cannoli - 12/10/2010 07:58:25 PM 388 Views
So, you think bankruptcy laws are immoral? everynametaken - 13/10/2010 12:18:43 AM 826 Views
I don't think it's immoral at all. The contract usually specifies penalties for breach. Tom - 12/10/2010 05:28:34 PM 912 Views
I thought the answer might be something like that. *NM* Rebekah - 12/10/2010 05:35:35 PM 373 Views
that is close to the way I see it random thoughts - 12/10/2010 05:45:25 PM 770 Views
It's both legal and immoral. LiterateDog - 12/10/2010 06:37:49 PM 854 Views
You didn't mention the third party Roland00 - 12/10/2010 08:26:56 PM 700 Views
in a way I did since I did mention society random thoughts - 12/10/2010 08:54:07 PM 847 Views
Thus the edit Roland00 - 12/10/2010 09:10:53 PM 872 Views
either way I think you made a good point *NM* random thoughts - 12/10/2010 09:38:58 PM 372 Views
will those neighbors... damookster - 14/10/2010 04:52:26 AM 975 Views
All depends where you get your morals from, really. Nebhead - 12/10/2010 08:28:41 PM 832 Views
I guess what i was trying to ask, at least in part random thoughts - 12/10/2010 09:48:24 PM 797 Views
What if you look at it from the other perspective? Sareitha Sedai - 12/10/2010 09:00:20 PM 850 Views
do you think they would if they had a legal way to do it? random thoughts - 12/10/2010 10:04:57 PM 826 Views
Good point. *NM* Tashmere - 12/10/2010 11:10:26 PM 389 Views
Sure, you could do that. Aeryn - 13/10/2010 01:54:55 AM 853 Views
The problem is that you're buying something today and paying for it for the next 15/30/50 years. Sareitha Sedai - 13/10/2010 03:04:26 PM 735 Views
Much like the concept of morality itself. Gaps - 12/10/2010 11:47:23 PM 767 Views
I find this line particularly interesting. everynametaken - 13/10/2010 12:13:18 AM 788 Views
Dunno. nossy - 13/10/2010 12:56:56 AM 893 Views
As a professional in financial services - no, it is not. Aeryn - 13/10/2010 01:44:18 AM 802 Views
but almost nobody sees it that way random thoughts - 13/10/2010 12:53:25 PM 803 Views
Is the deal that if you default, the bank gets the house and nothing else, though? Legolas - 13/10/2010 02:40:48 PM 795 Views
yes but the bank has a limited ability to collect random thoughts - 13/10/2010 02:47:34 PM 710 Views
I think it's morally wrong to walk away from credit card debt. *NM* Aeryn - 13/10/2010 09:43:11 PM 380 Views
I'm curious how you reconcile that Sareitha Sedai - 13/10/2010 09:47:59 PM 824 Views
Collateral Aeryn - 19/10/2010 07:21:14 PM 1321 Views
I agree, what do you think is different? random thoughts - 13/10/2010 09:59:36 PM 825 Views
The difference is that the bank owns the house. Whereas when I buy stuff, it's mine. *NM* Aeryn - 19/10/2010 07:05:34 PM 363 Views
I too am unable to work out what distinguishes the two situations. Tim - 13/10/2010 11:54:15 PM 758 Views
I lost sleep over it, but I did it anyway. John - 13/10/2010 05:24:19 AM 887 Views
OK what if you take it a step further random thoughts - 13/10/2010 03:44:30 PM 840 Views
Good question John - 14/10/2010 05:13:41 AM 858 Views
I have some questions about this issue. MightyYT - 13/10/2010 08:14:37 AM 812 Views
how do those questions affect the morality of the situation? random thoughts - 13/10/2010 03:20:14 PM 771 Views
Obviously, the essential difference is can't pay versus won't pay. Elaine - 13/10/2010 02:16:07 PM 775 Views
are you socializing your debt when it is a private bank? random thoughts - 13/10/2010 03:14:48 PM 829 Views
You are when said bank requires a bailout. And very many of them do. Elaine - 13/10/2010 03:22:59 PM 787 Views
it is the home fault that the banks have to be bailed out random thoughts - 13/10/2010 03:49:37 PM 848 Views
I believe it immoral to do harm. Macharius - 13/10/2010 04:38:28 PM 862 Views
I really don't understand a system where this could be an advantage. Tim - 13/10/2010 11:16:57 PM 806 Views
There's generally something like a 7 or 10 year limit on credit reporting here. LiterateDog - 13/10/2010 11:46:58 PM 822 Views
What's the use of suing someone who has no money? *NM* Tim - 13/10/2010 11:48:47 PM 438 Views
You can garnish their wages. LiterateDog - 13/10/2010 11:49:36 PM 781 Views
With parsley? Rebekah - 13/10/2010 11:51:37 PM 870 Views
No, "someone" most certainly did not, wicked young Miss! Hmph! *NM* LiterateDog - 13/10/2010 11:52:40 PM 430 Views
If they suddenly come into some, you're entitled to it. *NM* TaskmasterJack - 14/10/2010 12:07:34 AM 505 Views
Bit of a long shot. *NM* Tim - 14/10/2010 12:09:12 AM 355 Views
Very. Best to cover your bases though. *NM* TaskmasterJack - 14/10/2010 10:04:25 PM 373 Views
Not if the doctrine of election applies. Tim - 14/10/2010 10:14:07 PM 769 Views
Are we not talking about credit companies going after people who owe them money? TaskmasterJack - 14/10/2010 10:18:47 PM 817 Views
Yeah, I guess we are. Tim - 14/10/2010 10:28:40 PM 855 Views
Re: Gaps - 14/10/2010 03:09:18 AM 802 Views
I am currently in that situation... damookster - 14/10/2010 05:03:23 AM 902 Views
In Washington you can contest the assessed value used to determine property taxes. Vodalus - 14/10/2010 07:27:02 AM 852 Views
Re: I am currently in that situation... Macharius - 14/10/2010 05:49:24 PM 1141 Views
it is easy for me and others to be glib when it is just a theory *NM* random thoughts - 14/10/2010 08:19:16 PM 377 Views
If you have the ability to pay, I would consider it yet another immoral act in an immoral industry. Joel - 14/10/2010 07:49:38 AM 826 Views
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