This is interesting, exploring legal and moral justifications for “walking away.”
“If you stop making payments, you’re not breaching the contract, because default and foreclosure are valid means of fulfilling the contract”
RECOMMENDED: Related NPR interview with a Phoenix real estate attorney Mary Kinsley regarding “strategic defaults” and “walking away.” She used to get callers crying and asking how to avoid foreclosure. Now she gets callers saying they haven’t paid their mortgage in many months, they’re tired of paying the property taxes and HOA fees, so how can they force the bank to foreclose on them? (They can’t force the bank to foreclose.)
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Shailesh Ghimire 02.01.10 at 3:40 pm
Wow. Amazing. I know so many that are living rent free, mortgage free because the bank takes so long to get the process rolling. Some have lived in their homes making no payment for almost a year. Better than walking away. Stop paying and save money for apartment I guess. Tough situation.
John Wake 02.01.10 at 4:06 pm
Thanks!
jpthomas 02.06.10 at 5:35 pm
Well, all these people, the ones that bought and could not afford, cost all of us. You know who you are, you purchased that new home, then a couple of new vehicles to park in the driveway, new furniture, ski trips, a vacation to Europe……then your world came apart. I ask one simple question, how the hell did you ever think you could pay for all of this?…..and now I have to bail you out.