Website sells 'peace of mind' for walking away from mortgage

[Kidlicious]

The influence of money is destroying our society. This website makes money by convincing homeowners to walk away from their debts because it's 'the rational thing to do.' The main argument is businesses do it so why don't you.

Thanks corporate america and conservative economists for destroying my country.

http://www.youwalkaway.com/

[giblets]

Are you saying people shouldn't exercise an option in their contract?

I mean the bank is well aware that someone has the option of walking away when it agrees to the mortgage. In other words it accepted that possibility.

[Ming]

If the mortgage is higher than the current value of the home, it's a bad situation.
The Bank would have been more than happy collecting interest from the homeowner for years... it's a two way contract. Why shouldn't the homeowner be able to walk away?

[Kidlicious]

Everyone who ever lends money accepts that the borrower may not pay up. That doesn't make not paying up right.

[Kidlicious]

Why shouldn't the homeowner be able to walk away?

Because they borrowed the money, they need to pay it back. Would you stiff your friends?

[Ming]

Everyone who ever lends money accepts that the borrower may not pay up. That doesn't make not paying up right.

Never claimed it was "right"... but some people don't have a choice. The fact is, somebody who lends money does take that risk, and that's why they can collect interest.

[Ming]

Because they borrowed the money, they need to pay it back. Would you stiff your friends?

The bank isn't a friend
And no, they don't "NEED" to pay it back. Again, thanks to the economy, some people CAN NOT pay it back.

[giblets]

Everyone who ever lends money accepts that the borrower may not pay up. That doesn't make not paying up right.

Actually it does make it okay. If the bank signs a contract that says you can walk away, then you have the right to walk away. If you don't like it, don't lend people money on conditions that aren't acceptable to you.

[Kidlicious]

Never claimed it was "right"... but some people don't have a choice. The fact is, somebody who lends money does take that risk, and that's why they can collect interest.

If they CAN'T pay it back that's different. I'm talking about people who CAN pay back, but just choose to let others pay their bills.

[Kidlicious]

Actually it does make it okay. If the bank signs a contract that says you can walk away, then you have the right to walk away.

Well I don't know what you're talking about. If you walk away you default on your mortgage and it is reported to your credit score.

[Dinner]

Honestly, sometimes walking away from a poorly performing investment is the best thing to do. Corporations do it all the time. I myself am $180,000 underwater on my house. I just bought at a bad time though I've decided to stick it out. A mercenary would just hand the keys into the bank though and be done with it.

[giblets]

Well I don't know what you're talking about. If you walk away you default on your mortgage and it is reported to your credit score.

Of course it is. That doesn't mean there's anything morally wrong with walking away. People weigh the costs and benefits and decide if hurting their credit rating is worth the money they'll save.

[Kidlicious]

Honestly, sometimes walking away from a poorly performing investment is the best thing to do.

Walking away from and investment is not the same thing as walking away from a debt.

[Kidlicious]

Of course it is. That doesn't mean there's anything morally wrong with walking away. People weigh the costs and benefits and decide if hurting their credit rating is worth the money they'll save.

Then you have no honor.

[giblets]

Then you have no honor.

mortgages aren't backed by honor. they're backed by a house.

As far as I know, people don't swear on their word that they're going to pay it back, they agree that if they don't pay it back they lose the house.

If banks don't lend more money than the house is worth, they'll be okay.