No, It's Not Immoral To Walk Away From Your Mortgage (And It Might Be Financially Smart)
Henry Blodget | Jan. 24, 2010, 8:17 AM
The "is it moral to walk away from your mortgage" argument continues to rage. The latest to weigh in is professor Richard Thaler in the New York Times.
Thaler cites work by two fellow academics arguing that there might have been a morality argument a quarter-century ago, when your mortgage came from a local banker who was a member of your community. But now, Thaler says, that argument no longer applies.
And by viewing the mortgage as a "promise to pay" while the mortagelender views it as a business transaction, the homeowner is acting like a player at a poker table who thinks bluffing is unethical. more