My Listings

Wednesday, May 12, 2010

To Walk Away From A Mortgage – Is It The ‘Right’ Thing To Do?

In February I highlighted a CBS video that suggested, under certain circumstances, people should walk away from their mortgage. It generated some passionate commentary including:

“I noticed there was no mention of moral obligation or the additional stress to the already devastated financial market caused by people who choose to walk away from the[ir] mortgage simply because it’s better for them. Why worry about other people? As usual, this approach is short sighted and self centered. Just the kind of lunacy that caused this mess in the first place.”


“Who is this nut bag? Please – walk away. The Gov’t has HAMP and now HAFA. No mention of other options, like short sales? Did i miss something or is this woman not fully educated about avoiding foreclosure.”

It seems that more and more people are walking away and the conversation continues. On Sunday Morley Safer on the CBS show 60 Minutes discussed the question, with far more focus on the moral obligations of home ownership.

Part of this is certainly generational. My own father was always proud that over many decades his bank account never went overdrawn. Today’s generation (whatever that means) doesn’t see things that way and are far more comfortable with debt. Add new companies like to the mix and the decision about staying or walking away from a mortgage becomes a lot easier for many to make. It certainly seems easier for people born after 1950.

No comments:

Post a Comment