Re: Update on youwalkaway.com
Posted by jim on September 29, 2008 at 13:20:42:
In Reply to: Re: Update on youwalkaway.com
Posted by Paul on September 29, 2008 at 06:41:47:
Life events come into play as part of the "morality" discussion. I kind of envision it as a three point scale, 1 being people who absolutely cannot afford to keep the home, 2 being people in default but might be able to keep the home, possibly requiring multiple jobs and sacrifice, with 3 being people capable of making regular monthly payments.
People in the 1 or 2 category don't really have any moral quandary, they just have to make it through as best they can. People in the 3 category can make a choice, which is honoring their contractual obligations, or not. You bring up the concept of "casino play". Is it possible to go to Las Vegas, or another gambling destination and place a bet, without using any of your own money by saying "I'm only playing if I win. If I don't win, I'm just walking away".
Who gets hurt when someone does that with real estate? The remaining homeowners who will likely suffer reduced property values, stockholders in the lenders who become unprofitable, potential homeowners who now can't buy due to overly tight guidelines. It's not a game, there are real life impacts involved in these kinds of decisions.
Aside from any potential morality concepts, an awful lot of purchases from the last few years involved piggyback seconds. Those seconds don't just disappear in a foreclosure, they become unsecured debt. Any potential walk-away with enough income to pay their loan(s) might want to think about whether that second is going expend the resources to seek repayment.
BTW: I believe it was Citigroup that bought Wachovia
Follow Ups:
- Re: Update on youwalkaway.com - Paul 14:00:32 09/29/08
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- Re: Update on youwalkaway.com - jim 23:33:00 09/29/08
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