So why should home owners bear the brunt of the hardship? Why should they go into serious debt, deplete their savings, forego retirement, etc. in the interest of the rest of society? Why don’t the banks share the burden? I agree with those who believe that this may just be the swift kick the banks need to force them to share at least some of the loss in equity.

Times change and economic conditions fluctuate, and I don’t feel sorry for lenders if things don’t always work out in their best financial interest. Lenders of all people should realize that real estate is a gamble, and in these times, everyone pays the price when dealt a bad hand. In this case, home owners pay the price with severely damaged credit and lost property, and lenders get back the property they loaned to the borrower to sell at current market value or hold onto as they see fit. It all seems fair and legal to me.

That brings me back to this whole “moral issue,” which to me is a non-issue. A home loan contract is a legal document, and if a borrower decides it is in his best interest financially to default on the loan, then so be it. He pays the price by losing the home. That’s the agreement he had with the bank. End of story.

I have my opinion on the subject (obviously), but I would love to know what you think.

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