The American dream is to be able to own their own home at some time in their lives, they never dream of the day their home is foreclosed on. There could be a variety of reasons that a homeowner loses their home. These can range from the loss of a job, loss of business, death in the family, family feuds, increase in interest rates, and many other reasons. These are the typical reasons why a homeowner cannot pay the interests or principle on their home mortgages causing the banks to go into foreclosure. However, there are times when the homeowner will make the decision to go into foreclosure and this is when the ethics on the homeowner’s side will come into question.
When a homeowner signs the loan papers, they give their word that they will make these payments on a regular and timely basis. However, some homeowners will either make the decision to walk away from their home and let it go into foreclosure or they will simply stop making the payments on their homes. The people are not walking away from their commitment because of one of reasons mentioned above; they are still making the choice to walk away from their commitment even though they can afford their payments. These homeowners are walking away from their homes because of the value their homes have lost in the current recession.
Before walking away from their homes, these homeowners want to line up a new place to live. These homeowners are using a tactic that is referred to by real estate professionals as the “buy and bail,” buying a new house before their credit rating is impacted by walking away from... [continues]
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(2012, 04). Ethics in Foreclosures. StudyMode.com. Retrieved 04, 2012, from http://www.studymode.com/essays/Ethics-In-Foreclosures-978368.html
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"Ethics in Foreclosures." StudyMode.com. 04, 2012. Accessed 04, 2012. http://www.studymode.com/essays/Ethics-In-Foreclosures-978368.html.