Saturday, March 01, 2008

Personal Business Decisions

This trend is something I've written about before but I still find it somewhat fascinating. Business has long ago ceded any kind of moral obligation to people... so it's an interesting evolution that people are feeling no obligation to business. While I don't advocate walking away from your mortgage, I can certainly understand how one might look coldly at the facts and decide it's the best personal business strategy on the table.

As home prices plummet, growing numbers of borrowers are winding up owing more on their homes than the homes are worth, raising concerns that a new group of homeowners -- those who can afford to pay their mortgages but have decided not to -- are starting to walk away from their homes.

Typically borrowers who turn in their keys are those who have run into financial trouble or need to relocate but can't sell their homes. But mortgage-industry executives and consumer counselors say they are starting to see people who aren't in dire financial straits defaulting on their mortgages because they don't want to pay for properties that have negative equity.

It's a dog eat dog world, man.

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