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Strategic defaulting on Wall Street

So why not you?

After all, you're a person, so you've got the same rights corporations do.

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Submitted by Lex on

Until you pay off the note, you do not own the property. So in effect you're just giving the property back to its owner. You've lost your down payment and the total of monthly payments, which the lender keeps and the lender keeps the property and whatever its market value is.

Of course, the banks love your indentured servitude to the American Dream, but they also believe that you're obligated to a moral standard that does not apply equally to them. I have only one response to that situation: "Fuck 'em".

The key is to proceed with your strategic default in the manner from the article's example. That guy stayed in the house while the foreclosure process happened and saved all the money he would have made in payments (that wouldn't do him a damned bit of good). So had the bank not decided to work with him, he would have had a chunk of cash when he did walk away. Given how long it actually takes for these things to proceed, it probably would have amounted to a fairly large stack of bills.

Looks like perfectly sound rational-utilitarianism from where i sit...