When you buy a NEW CAR and drive it off the lot, you are UPSIDE DOWN...do people walk away?? This is a SICKNESS in our society.
You said — This is a SICKNESS in our society.
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Not really...
If one is to consider that a capitalistic society does things “strictly for business” and *only* on the basis of what benefits them personally — then, if one thinks that getting out from under that kind of burden is *beneficial* to them — then it’s *fine* for a capitalistic society...
Remember, “it’s just business”... that’s all.. nothing personal...
Why? Not that I'm advocating it as you should honor your contracts but consider what EVERY American is being taught with the bailouts and corporate scandals in the last 10 years.
You know what the lesson is? To hell with honor and commitments ... get the money and run.
We shouldn't be surpised when people take it to the personal level.
“When you buy a NEW CAR and drive it off the lot, you are UPSIDE DOWN...do people walk away??”
Great point!
Competition among banks, who saw home values heading upward, let their financial people say, “Heck, we can get by without as much down payment because the house will be worth 20% more in just one year.” So, the customary 20% went to 15%, then 10%, then 5%, then, in some places, 0% down (but may still have required mortgage insurance, which essentially insures against what a down payment would have helped with).
I personally believe all banks who did such things need to be held accountable and need to go under if they can't float their situation. This holds to even those who loaned based on a 20% down payment, for their stupidity of not insuring against a downturn in housing prices.
That said, I think anyone who attempts to walk away from a signed contract should have their butts in jail if they can't work it out with the entity that loaned them the money. That, and have their credit report decimated for life.