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

[Bosh]

Ming has been infinitely more entertaining since he stepped down as moderator Almost as good as UR no longer being a mod for rather different reasons...

Since Kid has been struggling with basic concepts let's make this easy.

Bob and Jim are both kids. Bob wants to buy a computer game and loans $20 from Jim to be able to buy it. At the time that they agree to the loan Bob promises that if he can't pay back the money then he'll give Jim the computer game. Give money or give the game are the terms of the agreement. Then a few weeks later its Christmas and Bob gets a better computer game and gets bored of the computer game he bought before so he decides to give it to Jim instead of giving Jim $20, even though he got $20 from his grandma for Christmas (because he wants to buy cheeseburgers with the $20 instead because cheeseburgers are delicious). Has Bob acted unethically?

[Solomwi]

So then what if you lent me money with no collateral? Then I could just default and that wouldn't be unethical?

How did you make the leap from what I posted to this? In my post, I specified the terms of the K, and the point was that fulfilling the K in the manner that Kid considers less desirable isn't unethical or immoral. Defaulting on an unsecured loan is a completely different matter.

A collateral loan is a loan secured by some asset you own. You promise to hand the asset over to the lender if you cannot repay the loan as agreed. By using a collateral loan, the lender takes less risk, and it may be easier for you to get funding. Make sure you know the essentials of collateral loans before you use one.

My knowledge of secured loans isn't what's being questioned in this thread. Trust me, I know what they are.

[Solomwi]

Ming, as stated earlier, this is only true in States which are explicitly non-recourse

Bear in mind that non-recourse loans are also allowed in most, if not all, recourse states, i.e., there's nothing in the law barring enforcement of a "repay the loan or settle the full debt by handing over the collateral" K.

[Kidlicious]

And only a pond scum like you would provide a link that leads to a site that security software feels is unsafe.

I'll leave it there with you.

[Kidlicious]

Ming has been infinitely more entertaining since he stepped down as moderator Almost as good as UR no longer being a mod for rather different reasons...

Since Kid has been struggling with basic concepts let's make this easy.

Bob and Jim are both kids. Bob wants to buy a computer game and loans $20 from Jim to be able to buy it. At the time that they agree to the loan Bob promises that if he can't pay back the money then he'll give Jim the computer game.

And that's not like the case of a mortgage. No one goes to get a mortgage and tells the bank that they aren't going to pay back the loan if the value of their house declines.

[Kidlicious]

My knowledge of secured loans isn't what's being questioned in this thread. Trust me, I know what they are.

No you don't.

[giblets]

And that's not like the case of a mortgage. No one goes to get a mortgage and tells the bank that they aren't going to pay back the loan if the value of their house declines.

If the contract says they can, the bank should be prepared for it to happen. If the bank gives a full mortgage for an overvalued house then it made a bad investment and if it loses money it has no one to blame but itself. But of course you love the banks.

[Kidlicious]

If the contract says they can, the bank should be prepared for it to happen. But of course you love the banks.

The contract does not say they can.

[giblets]

The contract does not say they can.

Some contracts do... and if the contract allows strategic default, it's not unethical.

[Kidlicious]

Some contracts do... and if the contract allows strategic default, it's not unethical.

Prove it.

[giblets]

Prove it.

http://en.wikipedia.org/wiki/Nonrecourse_debt
http://en.wikipedia.org/wiki/Mortgag...course_lending

[Kidlicious]

I'm not going to click that. Prove it.

[giblets]

If you're refusing to click a link to wikipedia, you're pretty much admitting defeat. It's not like you're going to get a virus from wikipedia.

[Kidlicious]

I'm not wasting my time with you boy.

[giblets]

You've already been proven wrong. Non-recourse mortgages exist and by their terms, the debtor is entitled to strategic default. But you won't admit it because you're a 41 year old baby.