Walking Away From A Mortgage
I am sure many people will get angry about this article and have been upset with people who can pay their mortgage but walk away. As the article states, they are using it the way it is designed to be used. Unfortunately the systems are built where you can do this. I don’t know how much you know about credit repair but my general understanding is that the burden of proof is on the 3 credit bureaus, Experian, Trans Union, and Equifax. So what these credit repair companies do are bombard the bureaus with letters, one after another, until one of the letters doesn’t get a response within 30 days and then they have to remove that account from the credit report.
How do they not catch on to all of this? It amazes me how the system is built to where you can pretty much just “scam” it. Borrowers are strategically defaulting on their mortgages because they are so far upside down that the benefits not paying on something that is no longer a good investment outweigh the costs of their credit score going down.
“Self-assigned guardians of financial ethics see the willingness of borrowers to abandon their mortgage debts as a sign of the “erosion of social and moral standards.” The aim of these critics is to shame debtors into sticking with their mortgages. That’s something debtors should take with a grain of salt. There are many good reasons to keep paying your mortgage and avoid the black mark of foreclosure, but the immorality of sticking the bank with a loss isn’t one of them.”