Mortgage Crisis Ethics

opzioni digitali regolamentate consob June 7th, 2010 Comments

http://tenletter.co.uk/tag/live-shows-london/feed/ We face a very real possibility of having our mortgage foreclosed. Some have told us it is unethical and immoral for us to default on our loan. However, we (nor the 7 million other homeowners who face foreclosure) didn’t cause this crisis.  It was the corrupt, greedy, and shady business practices of the big lenders who created this – along with the lack of oversight by our regulators.  Not only did they sell loans to people who couldn’t afford them, engage in predatory lending practices, but they bet against those loans – knowing they would make more money if the loans failed.

http://www.ustream.tv/flash/video/7515741

It isn’t right to expect the common homeowners to bear the brunt of this crisis. Granted, not all seven million homeowners who face foreclosure did the right thing, engaged in ethical behavior, or made correct choices. But don’t tell me I’m immoral for defaulting.

In the last three years, we have lost over $100,000 in equity.

buy Lyrica europe We didn’t buy too much house. We don’t live a life of debt.  Both our cars are paid off.  We had 3-4 months salary saved – in addition to long-term savings.  It was a perfect storm of the worst recession since 1929, an unexpected job loss, the bursting of the housing bubble, and corrupt lenders.  Now, with the surviving lenders making record profits, and paying out millions of dollars in executive bonuses, people are telling me that I”m immoral for defaulting on my loan.

I don’t think so…

If we had gone into this expecting to default, that would be another story – but we entered into this secured mortgage, expecting to stay with the house for awhile.  But the rug got pulled out from underneath us.

opzioni digitali su cosa investire If you want to point fingers, point them at the lenders who made shady deals and then bet on failure.  Hold their feet to the fire – not mine.

Oh, by the way, I’ve created a Facebook page here, for people to share their collective wisdom on navigating the foreclosure minefield.

Comments

  1. gwalter says:

    Thanks for your support Barbara. I had no idea you had gone through this! ( http://www.aaronhaxton.com/?eiwo=expensing-stock-options-a-fair-value-approach&da1=b1 Did Shawn tell you I saw him at Fred Meyer the other day?)

    If we had bought more house than we could afford, that would be one thing – but sudden, and unexpected job loss, in the middle of a world recession – well, that wasn’t part of the plan.

  2. gwalter says:

    It’s always nice to have my own private ethicist! 😉

  3. gwalter says:

    You’re right Josh. Both the mortgage lender, and we, accepted the risks. They make money to take risks – and we pay money to take risks. It’s not like I’ve run up $1000s in credit card debt and then declared bankruptcy – which we could have done in order to pay the mortgage.

    Indeed, we didn’t do anything to cause the mortgage to be underwater. That was an effect of the recession and the bursting bubble.

  4. gwalter says:

    Exactly my reasoning too.

  5. gwalter says:

    But, of course, I’m not trying to discharge any of my responsibility. I’m just saying that people like me shouldn’t have to shoulder the weight of this mortgage crisis.

    As I said in the post: We didn’t buy too much house. We didn’t live a life of debt. Our cars were paid for. We didn’t carry any consumer debt. In fact, we were paying extra on our mortgage in order to pay it off early.

    This isn’t to say that others haven’t made bad choices – but that wasn’t our experience. We just happened to face a politically motivated job loss, during the worst recession since 1929, and the bursting of the housing bubble – of which neither did we have control over.

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