You’ve probably heard that a high-profile realty group that had agreed to pay $5.4 billion for a New York City housing complex just announced it was not going to make good on its loans. You might describe the (former) owners as misguided, stupid, or unfortunate. You probably wouldn’t think of calling them immoral. So why is the average homeowner’s decision to walk away or keep up with the payments on an underwater mortgage considered a moral issue?
If you voluntarily walk away your mortgage because you owe more than the home is worth, are you a bad person? Should you even care?
Forget about shame and guilt. Don’t worry about your credit score. If you owe way more than your home is worth, simply stop paying the mortgage and don’t feel bad about it, suggests a University of Arizona professor.
