Can someone provide the exact moral code violated here?
Does it help to turn this around? Say you buy a house and agree to a $300,000 mortgage. You pay your mortgage perfectly, and do everything right. Three years later, the bank comes for a visit and says that, since someone wants to buy your house for $1 million, they are cancelling the mortgage, taking your house, and selling it (again) to the new guy.
Does that violate a moral code? I would say "Yes" and I would say it's the same moral code that the Walking Away people are violating.
Psalm 37:21 The wicked borrow and do not repay,
but the righteous give generously.
and
Keeping a Business Vow
http://www.cbn.com/finance/crownvow.aspx
How about,
"Thou shalt not lie". I've bought several houses and no where on any mortgage agreement that I signed did it say "I'll pay the money back, as long as my house isn't upside down. They have all said, "I agree to pay $X amount back." You walk away when you can still pay the mortgage, the your fruits tell that you had lied about your intentions. Once again, there is a difference between not being able to, and not wanting to.
"Thou shalt not steal". People who can pay their mortgage, but walk away, because their investment has gone south have for all intents and purposes stolen the lender's money; leaving them holding a property that is worth less than what was agreed upon. One could also debate that since foreclosures seem to depress prices in any given area that they are stealing from their neighbors, too, as their neighbor's property losses value due to their actions. Once again, there is a difference between not being able to, and not wanting to.