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Old 11-03-2014, 06:17 PM   #81
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Some have stated that a strategic default is not morally wrong and that it is a tool used by business. In my mind a default becomes morally wrong for the individual borrower when they have the financial means to keep paying their loan but conveniently choose to walk away.

JMHO
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Maybe a strategic default was not a great idea
Old 11-03-2014, 06:28 PM   #82
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Maybe a strategic default was not a great idea

Since i keep seeing the word "moral", let me ask an extreme question that involves money, morals and greed the way defaults do.

Pretty much everyone here has enough money to literally save somebody's life on this planet. Really, we all have enough cash to save the life of dying child, save a sex slave, bring an orphan out of extreme impoverishment.

That we choose to keep any portion of our money for consumption beyond essentials, is this more or less moral or "good" than defaulting a loan purposefully.


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Old 11-03-2014, 07:21 PM   #83
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Originally Posted by CRLLS View Post
WOW! So many concepts of how thing should be, what is ethical and what is lawful.

I think it is simple. Everything is simple if you break it down into small bits. I enter a contract to purchase a home. I say I will pay monthly payments of x dollars. That my "word" and as I was raised my word is my bond. If the house losses value and I am underwater, that is my problem, not the loan company. Just as if the home increases in value, that is my gain, not the loan company. If I can't pay, then the loan company has every right to reposes my house as "Partial" reimbursement. I am still obligated to pay the amount that is not recovered from the sale of that home.

Anyone who defaults on an obligation "strategically" (as opposed to really not being able to pay) is someone that I would never do business with. Unfortunately, I am forced to have financial relations due to that person in the form of higher interest rates, taxes and tighter loan requirements.

Personally, I was out of work during all of these home mortgage problems. I had no income and no unemployment benefits. But I could still payed the bills etc because I was "fiscally responsible". While everyone else was getting "forgiven" or their terms of their mortgage rewritten, I was not offered that, nor could I apply for any of it. I understand the problems some people get into, and have no problems when real life situations collapse. But personally, I find the "strategic" default somewhat disgusting.
You must not understand the world we now live in. If you win, it was all fair and square. if you lose, call your congressperson, or attorney, or rabble rouser who might take an interest in your plight or group affiliation. Try to get on TV, whine incessantly and it helps to be look downtrodden .

Nothing is as it seems, remember even Bill Clinton counseled us to realize that is all depended on the meaning of is. Your act counts, but not nearly as much as how you may be able to be presented.

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Old 11-03-2014, 07:26 PM   #84
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Originally Posted by dallas27 View Post
Since i keep seeing the word "moral", let me ask an extreme question that involves money, my morals and greed the way defaults do.

Pretty much everyone here has enough money to literally save somebody's life on this planet. Really, we all gave enough cash to save the life of dying child, save a sex slave, bring an orphan out of extreme impoverishment.

That we choose to keep any portion of our money for consumption beyond essentials, is this more or less moral or "good" than defaulting a loan purposefully.


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This is perhaps the best thing I have ever heard. I will immediately use it whenever I am tempted to feel guilty. Hey, you think I am using sharp practices? Silly person! I am just getting some money together to free sex slaves. You should be so morally superior!

Ha
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Old 11-04-2014, 07:18 PM   #85
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A neighbor of mine defaulted on her condo after taking out most of the appreciation a few years earlier. Besides sticking it to the bank, she stuck it to her neighbors by not paying $10,000 in home owner dues. Many of them could barely afford their own expenses much less having to pay hers. Such people deserve what they get.
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Old 11-04-2014, 08:33 PM   #86
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If the US government or a pseudo-government agency is guaranteeing lot of crappy mortgages because they didn't enforce the loan standards (to include the creditworthiness of borrowers, etc), then maybe we should learn a lesson and get them out of this line of business. .
Hmmm... frankly, I'd rather that those who lost their houses would receive the monies that all of us will pay for the offloaded loans.
We can only guess at the safety of the assets at Fannie and Freddie.
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