Is It OK To Walk Away?
As I mentioned in an earlier post, the Financial Times has a great piece noting the tendency of borrowers now to walk away from their homes, even if they could still pay on the mortgages. It’s particularly true in cases where borrowers owe more than their homes are worth.
This of course raises the question: Is it ever morally acceptable to walk away from a debt ? Has it become socially acceptable?
In California, there’s also the phenomenon of international foreclosures, where borrowers over their heads on their own loans deliberately stop paying in order to buy a cheaper forcelosed house on the market.
This debate already is well underway on the blogosphere, here, here and elsewhere.