Law professor: Stiff the mortgage company

November 28, 2009 | By | 1 Reply More

According to law professor Brent T. White, many of the home owners who currently owe more on their mortgage than the house is worth should stop paying their mortgages and walk away from their houses:

[F]ar more of the estimated 15 million U.S. homeowners who are underwater on their mortgages should stiff their lenders and take a hike. Doing so, he suggests, could save some of them hundreds of thousands of dollars that they “have no reasonable prospect of recouping” in the years ahead. Plus the penalties are nowhere near as painful or long-lasting as they might assume, he says.


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Category: Economy

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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  1. Jeremy says:

    He is suggesting is for households to make business decisions the same way that firms make business decisions. To put it another way, he is suggesting for heads of household to be as responsible to their heirs as CEOs are to their stockholders. I cannot find fault with this.

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