Walking Away...

Wow, I never thought that I would see the day that "walking away" from a mortgage would be a profitable business. CNN Money does not offer much in the way of a positive picture with this running as their lead.


There are more and more reports about people that have a new perspective on their homes/mortgages. It is a new paradigm in which the old guard at BofA, Wells Fargo, Citi and a host of others were taken completely unaware.

The new mortgage culture does not see their debt as a moral obligation, but instead sees their mortgage as nothing less than a business transaction. This is confusing for the golden parachute crowd in that for the first time in American history, the consumer shares their same viewpoint. It puts a major monkey wrench about the size of a gorilla in the cogs at the mortgage servicing factory and is wreaking mass havoc at the top.

Basically, the new "walk-away" culture says to themselves, "Why should I continue to pay for an increasing monthly mortgage amount on a depreciating piece of property/real estate?" They see it as a business transaction - if a business is losing money in a certain sector of their market, they shut the doors. Corporations don't feel a moral obligation to continue to pay for things or people that do not perform, therefore, why should the mortgagee?

Interesting question - we will touch on that more later, but here is a new company that apparently is doing very well that counsels people whether they should walk away or they should stick it out. Wow. No, this is not a joke.



Here is the link for the new company: You Walk Away