Posted by: Mike P. | January 7, 2010


Bankers are now claiming that those who walk away from underwater mortgages are in some way morally deficient. Why? Business is business. Would the bank fail to foreclose if a person ran into difficult circumstances? Of course not. Now, basically the bank is in a difficult circumstance of having formally secured loans become partially unsecured.

The solution? Renegotiate, obviously. But, that would demand that banks take losses equal to reality, and that is not something they are prepared to do. For if they did that, it would become obvious that the profits generated were fake, and the bonuses paid to executives undeserved.

Walk if you can … business is business. And you KNOW they will try to get legislation passed to make this more difficult in the future. So, make your plans now.

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