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Home Walkaway

Message to Mortgage Banks and the Feds: It's Time to Take the Haircut

Nicholas Carroll | Posted 12.20.2011 | Business
Nicholas Carroll

The "moral hazard" is worse than you feared: Americans are figuring out that morality changes as society changes, and that morality no longer includes obediently paying the mortgage

The Accelerating Shift in Attitudes Towards Home Walkaways

Nicholas Carroll | Posted 11.22.2011 | Business
Nicholas Carroll

There are a still few regions where foreclosure is never discussed beyond the immediate family, but it's less and less often due to the morality issue. This, I believe, is the beginning of the fourth and last wave of home walkaways.

Three Sound Legal and Moral Reasons For Strategic Default

Nicholas Carroll | Posted 08.23.2011 | Business
Nicholas Carroll

The standard justification is that "It's in the contract that the bank gets the house if you default." There are three much stronger justifications.

The Numbers Are In: Personal Debt Walkaway Is an Important Economic Stimulus

Nicholas Carroll | Posted 07.19.2011 | Business
Nicholas Carroll

A recent report calculates $67 billion a year less in home interest payments are being made than in early 2008, giving credence to what some have been writing since 2009: a dollar not sent to Wall Street is a dollar to be spent on Main Street.

How Men and Women Deal With a Home Walkaway

Nicholas Carroll | Posted 06.04.2011 | Business
Nicholas Carroll

A Trulia/Harris survey in 2010 found that 57% of men would consider strategic default, but only 40% of women would. In the real world of mortgage default, where walkaways are far more often for survival than strategy, I found the opposite.