Walking away, is this irresponsible. Don't ask a banker!

I recently read this article in the New York Times regarding bankers and politicians call to not have homeowners not walk away from their mortgages.  Interestingly enough the article makes it clear that business and in particular their business do this all the time. It even cites how Morgan Stanley actually chose to stop paying on an office buildings they bought in San Francisco. 

As quoted from the article.  Brent White, a University of Arizona law professor has argued that the government should stop perpetuating default “scare stories” and, indeed, should encourage borrowers to default when it’s in their economic interest. This would correct a prevailing imbalance: homeowners operate under a “powerful moral constraint” while lenders are busily trying to maximize profits. More important, it might get the system unstuck. If lenders feared an avalanche of strategic defaults, they would have an incentive to renegotiate loan terms. In theory, this could produce a wave of loan modifications — the very goal the Treasury has been pursuing to end the crisis.

To be sure if you are a homeowner you should try every available avenue before walking away. i.e. loan modification and possibly a short sale.  These damage a homeowners credit rating less.  Being in the business of help people into or out of a home by their own choosing I am furious at the mess created by these large banking institutions and the government that relaxed the rules enough to let them do it.

So I say if you are a homeowner and have not gotten any satisfaction from whoever owns your loan now, walk away.  Free from the notion that you have some moral obligation to the bankers.  If you are trying to get a loan modification and have not had any luck with your lender give me a call I recently met someone who has had success with these.  If you are interested in exploring the idea of a short sale I can help you.