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Do you think it is immoral or unethical for homeowners to walk away from their mortgages?

The results from a recent survey through the Phoenix Business Journal on whether or not you think it is immoral or unethical for homeowners to walk away from their mortgages (votes cast 1037)

53% of the poll takers said yes they think it’s immoral

37% of the poll takers said no they do not think it’s immoral

And 10% are unsure.

Here are some of the comments:

  • When one or more enter into a “contract” pure and simple it is unethical to voluntarily breach the terms – that’s why there are so many yellow pages filled with attorneys in the Phx phone book! Just because the financial and credit industries in our country are rife with corruption does not justify a single person to turn their back on their word. It is THEIR name executed on the signed contract! Ignorance and fantasizing are not considered goal planning strategies. We as a people and our Feds haven’t learned an extremely opportunistic and valuable lesson during this economic downturn that incidentally is due for a really good high colonic: Honesty and ethics begin at home!
  • unethical, maybe, if you could still make payments. immoral, of course not. simply put, the mortgage is a contract, with remedies for both parties if there is default. why is there an implied pressure for individuals to act/react differently than a business? walk away or stay, just know the consequences, and don’t let someone else decide for you, especially if they try to use some religious values garbage, as noted below.
  • I hate to split hairs with you, but one definition of immoral is unscrupulous or unethical. Websters even lists immoral and unethical as synonyms. But to me your answer is very disturbing. It shows the breakdown of society and the belief that because something is legal it is not immoral, unethical, or inappropriate.
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  • I have a feeling this story is not unique: My con artist neighbors stopped making payments for 2 YEARS and then worked with their lender on a refinancing plan. They refinanced the loan for a lower amount, at a lower interest, no back payments due, AND their new payments do not begin for one year due to their ‘hardship’. The house they ‘own’ is now a rental. They promptly moved out into a rental home and are collecting $1300 in rent each month for one year without any home loan obligations to their bank. Very convenient for them and downright criminal for the rest of us.
  • Its “just business”. Do the bug guys feel any moral compunction in the ways they conduct business? Then it wouldn’t be business. If all the homeowners, and credit card holders who are in debt, because they emulated what was being held up to them as ” good business” were able to organize, then “they” would become “too big too fail”. And then maybe “we’d” get somewhere; and then the “economy” would get moving again. IMHO
  • Strategic default is a business decision. There is no difference when the Mortgage Bankers Assoc walks from their underwater office building and a homeowner walking from their underwater home. The note and deed of trust outlines the obligations of each party, it is a contract that outlines the agreed upon consequences in the event the note is not paid.
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  • The housing market will not turn around until people have jobs. Some will end up renting forever. The banks used to have lending guidelines, I know I was a lending officer in the late 80’s early 90’s when you had to have a proof of income to qualify. They played fast and loose because they had the “insurance” that they would get paid regardless and profited from selling that insurance by bundling blocks of good and bad loans together. Who would not gamble if you knew you couldn’t lose, (banks) and who would not dip into a piggy bank if they thought they could get away with it. (consumers) I always had a a 20 something with a part time job wanting a fully loaded brand new truck. Where were the regulators? Joseph is right. These shenangians and many others happened during king George’s reign of terror.
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  • I may be one of those forever renters. I don’t see myself buying anytime in the near future, if at all. I put a HUGE chuck of money down on my house and the lender could have cared less to work with me when I needed help, and I had a very valid reason for needing help. I never want to end up at the mercy of a lender again and I sure as hell will never put down that kind of money again.
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  • And don’t forget the Fannie Mae & Freddie Mac gold rush all started with your Arkansas scum bag “used car salesmen” Clintons! Not saying your King George was a genius but not saying Hillary was/is not the slimiest, whitest female snake on the planet. As long as the socialists (Dems) try to turn our Federal Gov. into tax paid free entitlement administrators (Social Security, Titles 18 & 19), and demand our hospitals treat ALL indigents (citizens or not) then let me here you sing your praises for your Obama from your internment camp bunk! By the way, my high school football is better than yours! Grow up Dem Wits!
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  • For two reasons which I am insanely furious over. First – the bonus money to the executives. Second, they were given ’stimulous” money which they have NOT passed down to home owners here in Az, They used it to keep going so they dont HAVE to renegotiate the loans. I am ABSOLUTLY willing to pay the principle, it is the interest that they were given money to work with, so it is ther SPECULATION future “profit” money I have issue with NOT their out of pocket actual cash on the line money!
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  • I think it’s wrong for someone to walk away from an obligation. However, it was also wrong for the banks and mortgage companies to approve loans for unqualified buyers, and wrong for the government to push the banks and mortgage companies to approve bad loans. So, there’s plenty of blame to go around. What makes me mad is the fact that all these entities made the bad decisions, but we’re the ones who end up paying for it.
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  • I think it’s unethical for banker’s to allow people to sign a loan for way over what the homeowner’s can afford.
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  • I simply do not understand when the morality and total lack of “right from wrong” changed and it became acceptable to: not read the fine print on a very important legal document like a loan; sign up for something as stupid as a “interest only” mortgage with a five year change over just so you can purchase a home completely beyond the value of which you can actually and really afford; then in your complete victimized ignorance blame someone else and just walk away from your obligation. Yes it is completely immoral and unethical and yet another sign of the continued decay of America. “Tried in good faith” is such a ridiculous statement. Perhaps this is just a generational thing. I am quite sure the younger “me-me” self indulgent generation can simply justify walking away… but for myself… obviously an older generation… an obligation is something you repay. You can write all kinds of stupid and baseless rants to the “Presidential” level but they didn’t hold a gun to your head forcing you to do something as idiotic as purchase something you couldn’t afford or raise you to be so self centered that you don’t have the ethics, morals, or maturity to do what’s right. Stand up… be real men and women… accept the wrongs you have done… work through it… and grow up!!!!!!!
  • Most people didn’t plan to bite off more than they could chew. The housing market was rapidly increasing and many people didn’t think that housing values would depreciate so rapidly and so completely. This hasn’t happened in either our lifetimes nor our parents. I think it’s an extremely simple-minded and short-sighted statement say that if “you bite off more than you can chew, you go down with the sinking ship.” We are ALL going down with the ship, and some people are taking advantage of the situation. Some other people are truly suffering, and then there are the ignorant folks standing idly by making simpleton judgments…
  • A simpleton viewpoint would be the viewpoint in which one believes that being unprepared and uninformed is a reasonable excuse for making not only bad, but overly indulgent financial decisions. This was greed plain and simple and now we all have to pay for it. What is the thought process that justifies taking out a $400k loan at 0% interest or an adjustable rate without the income to sustain it? Since when is your primary residence considered a source of income and a piggy bank instead of a long-term investment? I remember all of the McMansions and middle class cubicle jockeys driving their over priced luxury cars financed with this “fake money” during the boom. I’ve got your number Joseph D. Tax payers like me will keep you afloat but we’d really rather have you walk the plank.
  • This is not a subjective approach but rather an objective in that you bite off more than you can chew, you go down with the sinking ship.

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

  • Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal

    Read more: Phoenix Business Pulse Surveys: Do you think it is immoral or unethical for homeowners to walk away from their mortgages? – Phoenix Business Journal