Comments on: Mortgage Poll: Are strategic defaults ethical? http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/ Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: breezinthru http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-6148 Mon, 04 Jul 2011 16:12:16 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-6148 In 2007, the Mortgage Bankers Association of America bought an office building in Washington, DC for 79 million USD. They put 4 million USD down and took out a mortgage for 75 million USD.

In early 2008, they did a short sale to Costar for 41.3 million USD, far short of the 75 million USD they owed.

At that time, most Americans didn’t even know what a short sale was. The MBAA is the same group who lobbied Congress to change the laws that were instituted after the Great Depression to keep a widespread banking failure from ever happening again.

I don’t want to hear anything about morality until those bastards are imprisoned.

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By: JimInNevada http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-6147 Mon, 04 Jul 2011 15:48:19 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-6147 The misguided notion that it is unethical for a “natural Person” to walkaway from a mortgage but good business for a corporate entity or other “artificial person” to do the same has unnecessarily prolonged the US mortgage crisis. Extending natural persons the same right as corporations would permit the principals of first mortgages to be crammed down by bankruptcy judges. Individualized judicial settlements of underwater mortgages would solve two critical problems: First, the stigma of bankruptcy would negate the “moral hazard” issue. Second, the time it takes to hear cases would allow for an orderly entry of the shadow inventory into the market, preventing further price decreases.

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By: Glennn http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-6143 Mon, 04 Jul 2011 15:00:56 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-6143 In the real world, ethics always takes a backseat to survival. The rest is lip service and posturing.

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By: mornmoos http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5923 Sun, 26 Jun 2011 04:38:32 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5923 Its unethical? Our government borrows money from us by selling us government bonds. If sometime in the future the Gov. owes so much that payments will be slightly hard to make, the solution is inflation (called debasing the currency). Just print more money which steals from everyone. Ours has done just that to me, in my lifetime, several times.

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By: wordz http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5919 Sat, 25 Jun 2011 23:17:36 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5919 Unethical, but a business decision none the less. We have been forced to play by the same rules as big business; looking out for number 1. No one else is going to do it for you.

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By: BakoD http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5917 Sat, 25 Jun 2011 20:30:08 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5917 Holy Cow – this poll is disheartening. While it may be a business decision and better for one’s bottom dollar; it’s unethical. A lot of posts here seem to want to justify it as ethical but it’s not. Banks are evil and I can’t say I wouldn’t do it, but I wouldn’t pretend I was being ethical.

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By: Sylvain2821 http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5888 Sat, 25 Jun 2011 02:43:47 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5888 I think that it is ethical to break a contract. As far as I know, a mortgage is just a contract whereas I get the house as long as I pay a set amount. If I don’t pay, I let the bank repossess. End of story. it’s fine if it is within the rules.

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By: 10_Tomas http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5873 Fri, 24 Jun 2011 20:32:24 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5873 yogahelps2
WoW! elect a liberal. I hear alot about the banks. The banks follow laws made by Frank & Dodd, the only blame is theirs. The government has yet to allow principle reduction which is the only way to stop the freefall.
Wake up US.

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By: Tipsymcstaggers http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5866 Fri, 24 Jun 2011 15:31:50 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5866 In response to Yogahelps2; Real Estate agents are always lumped in with the bankers an loan officers that helped create this enormous mess. Nobody ever points a finger at the developers that were raising prices by astronomical amounts for each new phase of their project. I was actually told by an analyst at one of the builders that “the price increases aren’t ‘rocket science’, we just push to see what the market will bear.”

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By: DunaDad http://blogs.reuters.com/reuters-wealth/2011/06/23/mortgage-poll-are-strategic-defaults-ethical/comment-page-1/#comment-5861 Fri, 24 Jun 2011 14:55:56 +0000 http://blogs.reuters.com/reuters-wealth/?p=15498#comment-5861 That first sentence should end with a question mark. Writer’s error.

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