My aunt walks away

[Robroy]

[Robroy]

I see walking away as follows: It is the equivalent of letting the pawn shop keep your watch. It is the pawn shop's responsibility if, by the time they put the watch up for sale, it is worth less than the loan they gave you.

[biliruben]

You have promised to repay the loan.

Sure, you can cut your losses on a bad investment, but you are still obligated to pay those losses. In many circumstances, they can come after you for the difference in court. And in many circumstances they would be justified in doing so, though it might not be in their best interest due to legal fees and the chances of recovery of substantial assets.

[rose-colored-coolaid]

[Robroy]

[Robroy]

[WestSideBilly]

[WestSideBilly]

[rose-colored-coolaid]

[biliruben]

You can make all the analogies you want, but the simple fact is that if you are in a recourse state or if you have refinanced, they can come after any and all assets you have if you walk away.

It has nothing to do with morality, in my mind. They'll just take take your money and stuff, and they'll do it legally. You promised to pay them back, and when you don't, they can take anything you have to make themselves whole.

It doesn't mean they will, but they are perfectly within the law to do so.

If you are in a non-recourse state and you haven't refinanced, it gets murkier.

[jon]

[Robroy]

[Robroy]

[jon]

[rose-colored-coolaid]