“Foreclose me … I’ll save money”

January 24, 2008 at 4:48 pm (General nonesense)

As more homeowners get over their heads in debt, I’m sure we’re going to see this happening more often: “Foreclose on me. Please”

The blog post in the LA Times makes an interesting point near the end of the article:

“I realize I agreed to the deal when I signed the mortgage papers, but I am within my rights to walk away from a bad deal and suffer the consequences, just as many corporations write down billions of dollars of debt, lose money for their shareholders, and lay off people as a result of their bad decisions.

“I don’t really understand why people view a business decision by a homeowner as a terrible moral lapse. However, when large lending institutions, with access to more sophisticated information than any consumer could imagine, make mistakes affecting thousands of people worldwide, they are not excoriated and vilified with the same righteous zeal.”

It is very interesting that bankruptcy isn’t treated as just another consequence to a bad business transaction by most folks. (If you recently decided to file, I’m sure you’re quickly discovering this). Somehow, your morals are on the line when you file your paperwork — you don’t just have a business problem, you have an ethical problem.

Why is that? (Especially in the case of a Chapter 13 bankruptcy)

1 Comment

  1. Jason Elder said,

    I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you.

    – Jason.

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