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Collateral Aeryn Send a noteboard - 19/10/2010 07:21:14 PM
...with what you said here:


In my view - when a bank issues a mortgage, they essentially buy the house. They will never issue a larger mortgage than the home is worth, and the risk I mentioned is the risk that they did just that - bought the house for the amount of the mortgage issued.

The question of credit card debt gets complicated when you factor in medical emergencies, or shady business practices like punative interest rates and etc. Walking away from a house is more like settling with a credit card company to pay a lower amount in return for loan forgiveness. I guess for me it comes down to partial loss vs. total loss on the part of the lender. Also, when you're given credit, it is entirely on the strength of your word that you'll pay it back.
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Is walking away from a mortgage immoral? random thoughts - 12/10/2010 04:45:43 PM 1477 Views
Just as a contract is a two way street - SilverWarder - 12/10/2010 05:12:09 PM 982 Views
do we have a moral obligation to society? random thoughts - 12/10/2010 06:00:17 PM 970 Views
It's a good question SilverWarder - 14/10/2010 02:41:21 AM 878 Views
Sort of have to disagree... Antigone - 13/10/2010 02:52:07 AM 940 Views
That's not true actually SilverWarder - 14/10/2010 02:35:43 AM 871 Views
Of course it's immoral. Sareitha Sedai - 12/10/2010 05:13:16 PM 940 Views
But does one sided morality work? random thoughts - 12/10/2010 05:38:56 PM 1066 Views
You asked about the morality of walking away when the borrower still has the ability to pay. Sareitha Sedai - 12/10/2010 07:31:10 PM 863 Views
A company or organization cannot act morally or immorally? I strongly disagree. *NM* Legolas - 12/10/2010 07:50:42 PM 421 Views
No, it cannot. However the individuals making the decisions for the company can. *NM* Cannoli - 12/10/2010 08:48:23 PM 369 Views
If banks can not behave in moral manner why should people be expected to behave in moral manner? random thoughts - 12/10/2010 08:07:56 PM 930 Views
I'm not absolved of my obligations based on the bad behaviors of others. Sareitha Sedai - 12/10/2010 08:25:33 PM 845 Views
but who you owe obligations to is a factor random thoughts - 12/10/2010 09:03:04 PM 908 Views
Because it's their moral obligation. Morality is not a trade, you act morally because it is right Cannoli - 12/10/2010 08:47:41 PM 1026 Views
you also use reason and logic to decide where your loyalty rest random thoughts - 12/10/2010 09:16:51 PM 927 Views
You have not explained how it IS the banks' fault Cannoli - 15/10/2010 01:30:10 PM 976 Views
That's the only kind of morality there is! What the hell is wrong with you? Cannoli - 12/10/2010 08:15:55 PM 887 Views
nothing wrong with me but I think you are off your meds again random thoughts - 12/10/2010 09:34:33 PM 891 Views
Re: nothing wrong with me but I think you are off your meds again Cannoli - 15/10/2010 02:50:49 PM 1387 Views
well I really can't argue with the wrong is wrong end of story belief system random thoughts - 15/10/2010 05:40:22 PM 1085 Views
A contract isn't a promise; it's a legal agreement. *NM* Ghavrel - 12/10/2010 06:25:24 PM 441 Views
Which is why contracts have to be pages and pages long and combed over by bloodsucking lawyers. LiterateDog - 12/10/2010 06:39:18 PM 929 Views
I would agree with you if contracts didn't provide for breaking them. Ghavrel - 12/10/2010 07:33:15 PM 777 Views
Hrm. Sareitha Sedai - 12/10/2010 07:35:38 PM 987 Views
did you take a personal oath in front of god and your loved ones to pay the loan back? *NM* random thoughts - 12/10/2010 08:09:07 PM 438 Views
Let's assume we're talking about a marriage where no such oath was taken... *NM* Sareitha Sedai - 12/10/2010 08:10:54 PM 452 Views
if there is no oath of fidelity then straying would not be immoral *NM* random thoughts - 12/10/2010 08:40:53 PM 420 Views
It's not immoral to break the marriage contract. Ghavrel - 12/10/2010 08:19:50 PM 1043 Views
I don't see that as the flaw in my logic. Sareitha Sedai - 12/10/2010 08:37:52 PM 952 Views
Re: I don't see that as the flaw in my logic. Ghavrel - 12/10/2010 09:00:00 PM 1034 Views
also random thoughts - 12/10/2010 09:37:38 PM 894 Views
That makes no sense whatsoever. Tim - 13/10/2010 11:38:06 PM 1016 Views
That must be why they have you sign something called an agreementory note *NM* Sareitha Sedai - 12/10/2010 07:33:32 PM 461 Views
Exactly *NM* Cannoli - 12/10/2010 07:58:25 PM 429 Views
So, you think bankruptcy laws are immoral? everynametaken - 13/10/2010 12:18:43 AM 921 Views
I don't think it's immoral at all. The contract usually specifies penalties for breach. Tom - 12/10/2010 05:28:34 PM 1031 Views
I thought the answer might be something like that. *NM* Rebekah - 12/10/2010 05:35:35 PM 411 Views
that is close to the way I see it random thoughts - 12/10/2010 05:45:25 PM 871 Views
It's both legal and immoral. LiterateDog - 12/10/2010 06:37:49 PM 956 Views
You didn't mention the third party Roland00 - 12/10/2010 08:26:56 PM 807 Views
in a way I did since I did mention society random thoughts - 12/10/2010 08:54:07 PM 947 Views
Thus the edit Roland00 - 12/10/2010 09:10:53 PM 981 Views
either way I think you made a good point *NM* random thoughts - 12/10/2010 09:38:58 PM 410 Views
will those neighbors... damookster - 14/10/2010 04:52:26 AM 1095 Views
All depends where you get your morals from, really. Nebhead - 12/10/2010 08:28:41 PM 940 Views
I guess what i was trying to ask, at least in part random thoughts - 12/10/2010 09:48:24 PM 932 Views
What if you look at it from the other perspective? Sareitha Sedai - 12/10/2010 09:00:20 PM 955 Views
do you think they would if they had a legal way to do it? random thoughts - 12/10/2010 10:04:57 PM 932 Views
Good point. *NM* Tashmere - 12/10/2010 11:10:26 PM 429 Views
Sure, you could do that. Aeryn - 13/10/2010 01:54:55 AM 963 Views
The problem is that you're buying something today and paying for it for the next 15/30/50 years. Sareitha Sedai - 13/10/2010 03:04:26 PM 840 Views
Much like the concept of morality itself. Gaps - 12/10/2010 11:47:23 PM 876 Views
I find this line particularly interesting. everynametaken - 13/10/2010 12:13:18 AM 903 Views
Dunno. nossy - 13/10/2010 12:56:56 AM 1000 Views
As a professional in financial services - no, it is not. Aeryn - 13/10/2010 01:44:18 AM 912 Views
but almost nobody sees it that way random thoughts - 13/10/2010 12:53:25 PM 901 Views
Is the deal that if you default, the bank gets the house and nothing else, though? Legolas - 13/10/2010 02:40:48 PM 897 Views
yes but the bank has a limited ability to collect random thoughts - 13/10/2010 02:47:34 PM 815 Views
I think it's morally wrong to walk away from credit card debt. *NM* Aeryn - 13/10/2010 09:43:11 PM 418 Views
I'm curious how you reconcile that Sareitha Sedai - 13/10/2010 09:47:59 PM 924 Views
Collateral Aeryn - 19/10/2010 07:21:14 PM 1425 Views
I agree, what do you think is different? random thoughts - 13/10/2010 09:59:36 PM 923 Views
The difference is that the bank owns the house. Whereas when I buy stuff, it's mine. *NM* Aeryn - 19/10/2010 07:05:34 PM 405 Views
I too am unable to work out what distinguishes the two situations. Tim - 13/10/2010 11:54:15 PM 861 Views
I lost sleep over it, but I did it anyway. John - 13/10/2010 05:24:19 AM 997 Views
OK what if you take it a step further random thoughts - 13/10/2010 03:44:30 PM 972 Views
Good question John - 14/10/2010 05:13:41 AM 969 Views
I have some questions about this issue. MightyYT - 13/10/2010 08:14:37 AM 928 Views
how do those questions affect the morality of the situation? random thoughts - 13/10/2010 03:20:14 PM 870 Views
Obviously, the essential difference is can't pay versus won't pay. Elaine - 13/10/2010 02:16:07 PM 881 Views
are you socializing your debt when it is a private bank? random thoughts - 13/10/2010 03:14:48 PM 953 Views
You are when said bank requires a bailout. And very many of them do. Elaine - 13/10/2010 03:22:59 PM 896 Views
it is the home fault that the banks have to be bailed out random thoughts - 13/10/2010 03:49:37 PM 947 Views
I believe it immoral to do harm. Macharius - 13/10/2010 04:38:28 PM 971 Views
I really don't understand a system where this could be an advantage. Tim - 13/10/2010 11:16:57 PM 907 Views
There's generally something like a 7 or 10 year limit on credit reporting here. LiterateDog - 13/10/2010 11:46:58 PM 925 Views
What's the use of suing someone who has no money? *NM* Tim - 13/10/2010 11:48:47 PM 479 Views
You can garnish their wages. LiterateDog - 13/10/2010 11:49:36 PM 909 Views
With parsley? Rebekah - 13/10/2010 11:51:37 PM 968 Views
No, "someone" most certainly did not, wicked young Miss! Hmph! *NM* LiterateDog - 13/10/2010 11:52:40 PM 465 Views
If they suddenly come into some, you're entitled to it. *NM* TaskmasterJack - 14/10/2010 12:07:34 AM 545 Views
Bit of a long shot. *NM* Tim - 14/10/2010 12:09:12 AM 409 Views
Very. Best to cover your bases though. *NM* TaskmasterJack - 14/10/2010 10:04:25 PM 430 Views
Not if the doctrine of election applies. Tim - 14/10/2010 10:14:07 PM 879 Views
Are we not talking about credit companies going after people who owe them money? TaskmasterJack - 14/10/2010 10:18:47 PM 926 Views
Yeah, I guess we are. Tim - 14/10/2010 10:28:40 PM 960 Views
Re: Gaps - 14/10/2010 03:09:18 AM 915 Views
I am currently in that situation... damookster - 14/10/2010 05:03:23 AM 1026 Views
In Washington you can contest the assessed value used to determine property taxes. Vodalus - 14/10/2010 07:27:02 AM 950 Views
Re: I am currently in that situation... Macharius - 14/10/2010 05:49:24 PM 1241 Views
it is easy for me and others to be glib when it is just a theory *NM* random thoughts - 14/10/2010 08:19:16 PM 418 Views
If you have the ability to pay, I would consider it yet another immoral act in an immoral industry. Joel - 14/10/2010 07:49:38 AM 935 Views
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