Friday, January 22

Should You Walk Away?

Here's the money quote from a scholarly article by University of Arizona professor Brent T White. regarding the economic impact of walking away from your mortgage:
Norms governing homeowner behavior stand in sharp contrast to norms governing lenders, who seek to maximize profits or minimize losses irrespective of concerns of morality or social responsibility. This norm asymmetry leads to distributional inequalities in which individual homeowners shoulder a disproportionate burden from the housing collapse. (My emphasis)
Friends, the big banks are utterly immoral. Walking away from a mortgage that is no longer a good deal for you is NOT immoral. If you're having trouble with your mortgage, you need to read this.

1 comment:

J said...

Thank-you for posting this very to-the-point narrative about this growing issue. I love how it is approched from a social perspective, shining a light on the "herd" mentaility of society.