Guilt and morality are one side, and objective financial analysis are on the other side.
Palm Coast, FL – January 9, 2012
When David Martin and his wife bought their north Seattle condo five years ago, they figured they had plenty of time to downsize if they needed to before they retired.
Now, with the property worth roughly $60,000 less than the balance of their mortgage, Martin, 68, has been giving serious thought to just walking away, a process lenders call "strategic default."
"Guilt and morality are one side, and objective financial analysis are on the other side," Martin said. "They’re coming to two opposite conclusions. I wonder how many other people are struggling with the same question."
Strategic defaults like the one contemplated by Martin are on the rise.
Read more >>>> MSN
Toby’s Commentary: This article and many others like it are written on the premise that only the defaulting borrower should feel guilty and/or imoral. They fail to address the outright criminality of robo-signing and the imorality of:
- Forcing borrowers to send in mortgage modification information time after time because the lender keeps losing it and generally giving borrowers the runaround
- Telling borrowers that their modification is in progress while continuing the foreclosure process behind their back
- Breaking the chain of title through the implementation of the Mortgage Electronic Registration System (MERS)
- And more; much much more
Do you think the lenders feel any guilt?