A tipping point? “Foreclose me … I’ll save money” – and interesting commentary and insight at CR. Sure, the moral and ethical thing may be to maintain the payments, but at what opportunity cost to the individual?
On suing buyer’s agents – I’m late to the party on this one, buy Jay did a bang-up analysis, and this is yet another opportunity to warn buyers of the possible perils of using a lender that has a financial relationship with the Realtor (or, as in this case, a Realtor who is also a lender).
A good buyer’s agent will show the clients the comps, the statistical analysis and methodology for their conclusions. Our job is to advise and guide – on the property’s value as well as throughout the transaction (and beyond) – not make decisions for buyers. Excellent discussion at BHB.Â
The comment threads about the business decision to foreclosure vs. the ethical obligation to continue to try and make payments are very interesting and entertaining. Imagine this scenario: You take the moral high ground and do everything you possible can to make the mortgage payments at all costs. First you forgo the luxury items (cable, eating out), then you cut back on things like insurance (hope you don’t get sick), then you cut back on gas and heating oil (buy a bike and space heater), then you skip meals, etc etc. All the money you send to a bank in North Carolina or California is money you don’t pump back into your local economy. Then your neighbors who own businesses can’t make their mortgage payments. So your moral decision to make the payments on your home actually bankrupted your own town. Imagine that.