Yes, it does. I know it sucks to pay what you can’t afford, to pay on a home that is worth less than the amount you gambled it would be. I am sure you have emotional, psychological, spiritual and some other reasons to walk. And now I read some economists have become ethicists and proclaimed homeowners, like corporations, have no soul, no I mean moral obligation to pay back what they borrowed.
He proceeded to explain that I didn’t have a moral obligation to the bank. I had a moral obligation to my family. I had a contractual obligation to the bank, along with a clear moral obligation to be honest in my dealings. What he was asking was this: Which is more important? Your contractual obligation to the bank or your obligation to your family to preserve your ability to make a living? Source
That’s nice. And it sounds reasonable, I suppose the thousands of people who drove up credit cards and chose bankruptcy agree- but unlike those fat cats with the golden parachutes who get paid regardless of whether or not their company makes a profit, I don’t. Destroy the housing and consumer credit market and my 401k slumps despite prudent, sacrifical investment; my company falters, I don’t get raise while everything else goes up. And I still don’t own a home. The money I want to use to buy a home, you know that 20% you shrugged off as travel money not a down payment on a home, is locked into my 401k. I will borrow on it, but I watch it every day bobbing and I wait to withdraw, you know when the market is up. I am going to buy one of those foreclosed homes and pay a pittance per month on a minimum mortgage. That way, when things get worse I will at least have a roof over my head.
You may think, but wait she’s benefiting from mortgage rates unheard of since 1970…yeah, whoop dee doo. Unlike you, I think about my children. Lots of luck they’ll have ever qualifying for a mortgage or credit- in the future only the wealthy will own homes, because why would banks ever again extend credit to a class of folks who will just walk. So maybe when my children are 50 they will have enough saved to buy a home outright or maybe they’ll just have to wait and inherit mine.
Please note, I am not a financial miser; I have made loads of mistakes, financial mistakes it took 7 years to remedy. I paid back far more than I ever owed, on perishable items like groceries because I didn’t earn enough to eat and live.
Mostly, I am shocked this financial advisor still hasn’t learned his lesson- he’s not qualified to give money advice, tho I am sure he’d be empathetic.
A Trappist beer is somewhat different to an abbey beer. Out of all the beers in the world, only seven of them can use the name ‘Trappist’: Achel, Chimay, La Trappe, Orval, Rochefort, Westvleteren and Westmalle. You can recognise them from the “Authentic Trappist Product” logo.