I admit that my statement yesterday that “ethics and morals should not even enter the conversation” was a bit of intentional editorial hyperbole intended to spur the discussion. Obviously it does make sense to have a conversation about the ethics of walking away, since that’s exactly what we did for 177 comments (so far). As…
Tag: mortgages
On Misguided Ethics and Walking Away from a Mortgage
With the subject of “walking away” finally hitting the mainstream media in full force this weekend with a dedicated segment on Sunday’s 60 Minutes, it would appear that the idea of giving the keys back to the bank to get out of a financial death spiral continues to gain some serious traction. Of course, even…
“Tax Savings” Far Overshadowed by Interest Paid
This weekend Seattle Bubble favorite Steve Tytler fielded a question from a very confused homeowner in his real estate Q&A column in the Everett Herald. Couple’s dilemma: To rent out house or sell Here is a portion of the owner’s question. We were given a house valued at $250,000, which is paid for. We have…
Banks offering cash incentives for short sale sellers?
Received this via email from an industry insider. It’s a letter from Wachovia Mortgage offering a $5,000 cash incentive to the a (presumably underwater) mortgage holder if they complete a short sale within 60 days. Click either image to enlarge. Quoting in part: These are challenging times and many people feel they are running out…
Fiduciary Standards in Lending and on Wall Street: Can it Work?
Question for discussion: In Washington State, can Loan Officers operate within the framework of a Fiduciary duty to their clients when the lending industry is structured with incentives that may be in conflict with the new standard? Jane Kim of the Wall Street Journal wrote an excellent article in this past weekend’s issue regarding Wall…