This is a good thing. When you sign a mortgage, you sign an agreement to pay off the loan, -OR- give over the property in foreclosure. For a long time, the "OR" part was definitely a bad idea compared to just keeping the payments flowing. However, there is nothing morally wrong with walking away from the mortgage.
19. Dysfunctional Two-Party Political Bomb. Polarized partisanship increasing: Every day both parties show zero interest in cooperating for the public good. Instead they fight viciously, resisting everything and anything proposed by opponents. Only goal: Score political points, make the other side look bad.
I wonder how many of those people he had tried to talk out of securing a mortgage before the bubble burst.
19. Dysfunctional Two-Party Political Bomb
No one says defaulting on a contract is pretty or that, in a perfectly functioning society, defaults would be the rule. But to put the onus for restraint on ordinary homeowners seems rather strange. If the Mortgage Bankers Association is against defaults, its members, presumably the experts in such matters, might take better care not to lend people more than their homes are worth.
So basically anything you buy, if it depreciates, you should stop paying for?
I'm assuming you never buy computers, cars, or basically anything else in the world?
but even at that age who wants to walk away from the $43,000 he put down on it, plus whatever he's paid off in four years.
It's your contract, you made it with the bank and welching out on it is just bad form
You made bad decisions, you're stuck with living through them. Deal.
"While the administration wants a sweeping program that would prevent millions of foreclosures, it doesn't want to be seen as rewarding the greedy or reckless."^
Did he originally buy the condo as a place to live or as an investment? If it was as a place to live that he thought was worth $215K to him then he still has that and has lost nothing. If it was a real estate investment then he over-leveraged a volatile asset and is paying the price. I have little sympathy for people who take risks and lose.
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