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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 1611 Views
Just as a contract is a two way street - SilverWarder - 12/10/2010 05:12:09 PM 1078 Views
do we have a moral obligation to society? random thoughts - 12/10/2010 06:00:17 PM 1073 Views
It's a good question SilverWarder - 14/10/2010 02:41:21 AM 975 Views
Sort of have to disagree... Antigone - 13/10/2010 02:52:07 AM 1042 Views
That's not true actually SilverWarder - 14/10/2010 02:35:43 AM 964 Views
Of course it's immoral. Sareitha Sedai - 12/10/2010 05:13:16 PM 1045 Views
But does one sided morality work? random thoughts - 12/10/2010 05:38:56 PM 1162 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 954 Views
A company or organization cannot act morally or immorally? I strongly disagree. *NM* Legolas - 12/10/2010 07:50:42 PM 471 Views
No, it cannot. However the individuals making the decisions for the company can. *NM* Cannoli - 12/10/2010 08:48:23 PM 412 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 1029 Views
I'm not absolved of my obligations based on the bad behaviors of others. Sareitha Sedai - 12/10/2010 08:25:33 PM 943 Views
but who you owe obligations to is a factor random thoughts - 12/10/2010 09:03:04 PM 1003 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 1139 Views
you also use reason and logic to decide where your loyalty rest random thoughts - 12/10/2010 09:16:51 PM 1050 Views
You have not explained how it IS the banks' fault Cannoli - 15/10/2010 01:30:10 PM 1098 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 1003 Views
nothing wrong with me but I think you are off your meds again random thoughts - 12/10/2010 09:34:33 PM 978 Views
Re: nothing wrong with me but I think you are off your meds again Cannoli - 15/10/2010 02:50:49 PM 1488 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 1185 Views
A contract isn't a promise; it's a legal agreement. *NM* Ghavrel - 12/10/2010 06:25:24 PM 484 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 1017 Views
I would agree with you if contracts didn't provide for breaking them. Ghavrel - 12/10/2010 07:33:15 PM 871 Views
Hrm. Sareitha Sedai - 12/10/2010 07:35:38 PM 1088 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 482 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 497 Views
if there is no oath of fidelity then straying would not be immoral *NM* random thoughts - 12/10/2010 08:40:53 PM 461 Views
It's not immoral to break the marriage contract. Ghavrel - 12/10/2010 08:19:50 PM 1140 Views
I don't see that as the flaw in my logic. Sareitha Sedai - 12/10/2010 08:37:52 PM 1042 Views
Re: I don't see that as the flaw in my logic. Ghavrel - 12/10/2010 09:00:00 PM 1126 Views
also random thoughts - 12/10/2010 09:37:38 PM 986 Views
That makes no sense whatsoever. Tim - 13/10/2010 11:38:06 PM 1131 Views
That must be why they have you sign something called an agreementory note *NM* Sareitha Sedai - 12/10/2010 07:33:32 PM 507 Views
Exactly *NM* Cannoli - 12/10/2010 07:58:25 PM 471 Views
So, you think bankruptcy laws are immoral? everynametaken - 13/10/2010 12:18:43 AM 1021 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 1121 Views
I thought the answer might be something like that. *NM* Rebekah - 12/10/2010 05:35:35 PM 459 Views
that is close to the way I see it random thoughts - 12/10/2010 05:45:25 PM 975 Views
It's both legal and immoral. LiterateDog - 12/10/2010 06:37:49 PM 1072 Views
You didn't mention the third party Roland00 - 12/10/2010 08:26:56 PM 904 Views
in a way I did since I did mention society random thoughts - 12/10/2010 08:54:07 PM 1047 Views
Thus the edit Roland00 - 12/10/2010 09:10:53 PM 1061 Views
either way I think you made a good point *NM* random thoughts - 12/10/2010 09:38:58 PM 444 Views
will those neighbors... damookster - 14/10/2010 04:52:26 AM 1215 Views
All depends where you get your morals from, really. Nebhead - 12/10/2010 08:28:41 PM 1044 Views
I guess what i was trying to ask, at least in part random thoughts - 12/10/2010 09:48:24 PM 1052 Views
What if you look at it from the other perspective? Sareitha Sedai - 12/10/2010 09:00:20 PM 1075 Views
do you think they would if they had a legal way to do it? random thoughts - 12/10/2010 10:04:57 PM 1027 Views
Good point. *NM* Tashmere - 12/10/2010 11:10:26 PM 470 Views
Sure, you could do that. Aeryn - 13/10/2010 01:54:55 AM 1065 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 967 Views
Much like the concept of morality itself. Gaps - 12/10/2010 11:47:23 PM 967 Views
I find this line particularly interesting. everynametaken - 13/10/2010 12:13:18 AM 1006 Views
Dunno. nossy - 13/10/2010 12:56:56 AM 1115 Views
As a professional in financial services - no, it is not. Aeryn - 13/10/2010 01:44:18 AM 1005 Views
but almost nobody sees it that way random thoughts - 13/10/2010 12:53:25 PM 1005 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 994 Views
yes but the bank has a limited ability to collect random thoughts - 13/10/2010 02:47:34 PM 919 Views
I think it's morally wrong to walk away from credit card debt. *NM* Aeryn - 13/10/2010 09:43:11 PM 459 Views
I'm curious how you reconcile that Sareitha Sedai - 13/10/2010 09:47:59 PM 1038 Views
Collateral Aeryn - 19/10/2010 07:21:14 PM 1522 Views
I agree, what do you think is different? random thoughts - 13/10/2010 09:59:36 PM 1011 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 458 Views
I too am unable to work out what distinguishes the two situations. Tim - 13/10/2010 11:54:15 PM 958 Views
I lost sleep over it, but I did it anyway. John - 13/10/2010 05:24:19 AM 1100 Views
OK what if you take it a step further random thoughts - 13/10/2010 03:44:30 PM 1108 Views
Good question John - 14/10/2010 05:13:41 AM 1080 Views
I have some questions about this issue. MightyYT - 13/10/2010 08:14:37 AM 1017 Views
how do those questions affect the morality of the situation? random thoughts - 13/10/2010 03:20:14 PM 969 Views
Obviously, the essential difference is can't pay versus won't pay. Elaine - 13/10/2010 02:16:07 PM 985 Views
are you socializing your debt when it is a private bank? random thoughts - 13/10/2010 03:14:48 PM 1047 Views
You are when said bank requires a bailout. And very many of them do. Elaine - 13/10/2010 03:22:59 PM 980 Views
it is the home fault that the banks have to be bailed out random thoughts - 13/10/2010 03:49:37 PM 1032 Views
I believe it immoral to do harm. Macharius - 13/10/2010 04:38:28 PM 1054 Views
I really don't understand a system where this could be an advantage. Tim - 13/10/2010 11:16:57 PM 997 Views
There's generally something like a 7 or 10 year limit on credit reporting here. LiterateDog - 13/10/2010 11:46:58 PM 1031 Views
What's the use of suing someone who has no money? *NM* Tim - 13/10/2010 11:48:47 PM 524 Views
You can garnish their wages. LiterateDog - 13/10/2010 11:49:36 PM 1007 Views
With parsley? Rebekah - 13/10/2010 11:51:37 PM 1074 Views
No, "someone" most certainly did not, wicked young Miss! Hmph! *NM* LiterateDog - 13/10/2010 11:52:40 PM 506 Views
If they suddenly come into some, you're entitled to it. *NM* TaskmasterJack - 14/10/2010 12:07:34 AM 581 Views
Bit of a long shot. *NM* Tim - 14/10/2010 12:09:12 AM 457 Views
Very. Best to cover your bases though. *NM* TaskmasterJack - 14/10/2010 10:04:25 PM 472 Views
Not if the doctrine of election applies. Tim - 14/10/2010 10:14:07 PM 981 Views
Are we not talking about credit companies going after people who owe them money? TaskmasterJack - 14/10/2010 10:18:47 PM 1033 Views
Yeah, I guess we are. Tim - 14/10/2010 10:28:40 PM 1053 Views
Re: Gaps - 14/10/2010 03:09:18 AM 1025 Views
I am currently in that situation... damookster - 14/10/2010 05:03:23 AM 1120 Views
In Washington you can contest the assessed value used to determine property taxes. Vodalus - 14/10/2010 07:27:02 AM 1050 Views
Re: I am currently in that situation... Macharius - 14/10/2010 05:49:24 PM 1343 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 460 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 1046 Views
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