A mortgage is a business deal. There is nothing sacrosanct about it. If the equity was rising and the homeowner lost the ability to pay and the bank took the property back, reaping all the benefit, would anyone say that wasn’t fair? Of course not. They would simply say that was the risk inherent in the deal and buyer should have known and accepted it. It is the same thing in reverse. It is not good or bad it is just business.
Furthermore, businesses/companies default all the time on deals which become unprofitable. As shareholders we demand they do so to protect the company and the stock price. People need to lighten up on strategic defaulters. By giving up the property that was the subject of the mortgage they have fully performed the contract. The banks made poor judgment in making the deal and should not be protected or bailed out for doing so.
YES!!