Who should eat it? The bank or you?
Foreclosures are all over in the news. Frankly, I’m tired of hearing (and writing) about it. Robosigners, Foreclosure Mills, Possible Moratoriums, add to the glossary of 2010 Foreclosure Terms: Selective Default. The definition is this, choosing to walk away from your mortgage and home because it is a bad investment. We’re not talking about people who are no longer able to pay the mortgage due to unemployment or rising payments. We are talking about people who simply don’t want to keep paying on a house that is no longer worth what they bought it for. The implications are broad and raise questions such as: Who is responsible for an upside down mortgage? The individual buyer or the bank? The temptation is there, but is it ethical? What do you think? Here is the full story.