I was legitimately unable to keep up with my mortgage payments when my loan went into default. I tried for many months to get the bank to work with me on a loan modification to no avail. Also, during that process representatives on the bank blatantly lied to me about the process. Right after the house went into forclosure I had a bit of a windfall and would have been able to catch up completely. I chose instead to pay off my credit cards and let the foreclosure continue. I had enough left over to get a hard money loan and buy another house.
Immoral: I'd say yes. I really felt bad about the whole thing. But to be honest, I don't lose sleep over it anymore. Looking back at my communications with the bank really helps to assuage any guilty feelings I may have had. The money I had could have been theirs if they wouldn't have been deceitful and completely unwilling to work with me.
Now I have an easy to afford house payment and am otherwise debt free. I have money in savings and I'm starting to invest in my future (I changed my 401K contributions to maximum and I'm also starting to invest on my own). Financially, it was a brilliant decision to let the bank forclose.
Immoral: I'd say yes. I really felt bad about the whole thing. But to be honest, I don't lose sleep over it anymore. Looking back at my communications with the bank really helps to assuage any guilty feelings I may have had. The money I had could have been theirs if they wouldn't have been deceitful and completely unwilling to work with me.
Now I have an easy to afford house payment and am otherwise debt free. I have money in savings and I'm starting to invest in my future (I changed my 401K contributions to maximum and I'm also starting to invest on my own). Financially, it was a brilliant decision to let the bank forclose.
Is walking away from a mortgage immoral?
- 12/10/2010 04:45:43 PM
1373 Views
Just as a contract is a two way street -
- 12/10/2010 05:12:09 PM
872 Views
Of course it's immoral.
- 12/10/2010 05:13:16 PM
843 Views
But does one sided morality work?
- 12/10/2010 05:38:56 PM
962 Views
You asked about the morality of walking away when the borrower still has the ability to pay.
- 12/10/2010 07:31:10 PM
765 Views
A company or organization cannot act morally or immorally? I strongly disagree. *NM*
- 12/10/2010 07:50:42 PM
387 Views
No, it cannot. However the individuals making the decisions for the company can. *NM*
- 12/10/2010 08:48:23 PM
330 Views
If banks can not behave in moral manner why should people be expected to behave in moral manner?
- 12/10/2010 08:07:56 PM
836 Views
I'm not absolved of my obligations based on the bad behaviors of others.
- 12/10/2010 08:25:33 PM
742 Views
Because it's their moral obligation. Morality is not a trade, you act morally because it is right
- 12/10/2010 08:47:41 PM
930 Views
That's the only kind of morality there is! What the hell is wrong with you?
- 12/10/2010 08:15:55 PM
789 Views
nothing wrong with me but I think you are off your meds again
- 12/10/2010 09:34:33 PM
783 Views
Re: nothing wrong with me but I think you are off your meds again
- 15/10/2010 02:50:49 PM
1281 Views
well I really can't argue with the wrong is wrong end of story belief system
- 15/10/2010 05:40:22 PM
983 Views
A contract isn't a promise; it's a legal agreement. *NM*
- 12/10/2010 06:25:24 PM
407 Views
Which is why contracts have to be pages and pages long and combed over by bloodsucking lawyers.
- 12/10/2010 06:39:18 PM
821 Views
I would agree with you if contracts didn't provide for breaking them.
- 12/10/2010 07:33:15 PM
679 Views
Hrm.
- 12/10/2010 07:35:38 PM
886 Views
did you take a personal oath in front of god and your loved ones to pay the loan back? *NM*
- 12/10/2010 08:09:07 PM
395 Views
Let's assume we're talking about a marriage where no such oath was taken... *NM*
- 12/10/2010 08:10:54 PM
410 Views
if there is no oath of fidelity then straying would not be immoral *NM*
- 12/10/2010 08:40:53 PM
383 Views
It's not immoral to break the marriage contract.
- 12/10/2010 08:19:50 PM
947 Views
That must be why they have you sign something called an agreementory note 
*NM*
- 12/10/2010 07:33:32 PM
407 Views
*NM*
- 12/10/2010 07:33:32 PM
407 Views
I don't think it's immoral at all. The contract usually specifies penalties for breach.
- 12/10/2010 05:28:34 PM
917 Views
You didn't mention the third party
- 12/10/2010 08:26:56 PM
703 Views
in a way I did since I did mention society
- 12/10/2010 08:54:07 PM
849 Views
What if you look at it from the other perspective?
- 12/10/2010 09:00:20 PM
855 Views
Sure, you could do that.
- 13/10/2010 01:54:55 AM
856 Views
The problem is that you're buying something today and paying for it for the next 15/30/50 years.
- 13/10/2010 03:04:26 PM
739 Views
As a professional in financial services - no, it is not.
- 13/10/2010 01:44:18 AM
805 Views
but almost nobody sees it that way
- 13/10/2010 12:53:25 PM
807 Views
Is the deal that if you default, the bank gets the house and nothing else, though?
- 13/10/2010 02:40:48 PM
800 Views
I think it's morally wrong to walk away from credit card debt. *NM*
- 13/10/2010 09:43:11 PM
382 Views
I agree, what do you think is different?
- 13/10/2010 09:59:36 PM
830 Views
The difference is that the bank owns the house. Whereas when I buy stuff, it's mine. *NM*
- 19/10/2010 07:05:34 PM
364 Views
I too am unable to work out what distinguishes the two situations.
- 13/10/2010 11:54:15 PM
761 Views
I lost sleep over it, but I did it anyway.
- 13/10/2010 05:24:19 AM
893 Views
Obviously, the essential difference is can't pay versus won't pay.
- 13/10/2010 02:16:07 PM
779 Views
are you socializing your debt when it is a private bank?
- 13/10/2010 03:14:48 PM
832 Views
You are when said bank requires a bailout. And very many of them do.
- 13/10/2010 03:22:59 PM
792 Views
I really don't understand a system where this could be an advantage.
- 13/10/2010 11:16:57 PM
810 Views
There's generally something like a 7 or 10 year limit on credit reporting here.
- 13/10/2010 11:46:58 PM
825 Views
What's the use of suing someone who has no money? *NM*
- 13/10/2010 11:48:47 PM
440 Views
You can garnish their wages.
- 13/10/2010 11:49:36 PM
786 Views
With parsley?
- 13/10/2010 11:51:37 PM
876 Views
No, "someone" most certainly did not, wicked young Miss! Hmph! *NM*
- 13/10/2010 11:52:40 PM
431 Views
If they suddenly come into some, you're entitled to it. *NM*
- 14/10/2010 12:07:34 AM
507 Views
Bit of a long shot. *NM*
- 14/10/2010 12:09:12 AM
356 Views
Very. Best to cover your bases though. *NM*
- 14/10/2010 10:04:25 PM
378 Views
Not if the doctrine of election applies.
- 14/10/2010 10:14:07 PM
773 Views
Are we not talking about credit companies going after people who owe them money?
- 14/10/2010 10:18:47 PM
821 Views
I am currently in that situation...
- 14/10/2010 05:03:23 AM
906 Views
In Washington you can contest the assessed value used to determine property taxes.
- 14/10/2010 07:27:02 AM
855 Views
it is easy for me and others to be glib when it is just a theory *NM*
- 14/10/2010 08:19:16 PM
378 Views
If you have the ability to pay, I would consider it yet another immoral act in an immoral industry.
- 14/10/2010 07:49:38 AM
832 Views