Businesses Advised To Walk Away

[Extend a Hand]

http://globaleconomicanalysis.blogspot.com/2008/02/businesses-advised-to-walk-away.html

Oh! The Morality!

Note the irony. Numerous programs are being put into place in an attempt by banks and mortgage holders to encourage home owners to stay debt slaves forever, while lawyers are advising banks to walk away from contracts and pay the penalty of loss of reputation.

Exactly how does this differ from homeowners choosing to walk away from their obligations with a price of "loss in reputation" otherwise known as a black mark on their credit score?

Here's the answer: There is no difference, and that is precisely why all these programs to keep homeowners in their homes when it is a bad economic decision for them to stay, will fail.

"It is the tipping point argument," said a senior partner at one of the biggest private equity firms, who asked not to be named said Mish, who was willing to be named. "The banks Consumers have so many issues with their balance sheets that they are considering a new policy."

If it's in your best interest to walk, and you are willing to pay the penalty price, then walk.

[SoCalDem]

1. Are there no auditors anymore?

This sort of thing should have been caught rather quickly if there were still nitpicky auditors doing their jobs..

When I worked for a bank, we had auditors all the time..