Law professor: Stiff the mortgage company

| November 28, 2009 | 1 Reply

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.

Share

Tags: , ,

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 and his wife, Anne Jay, live in the Shaw Neighborhood of St. Louis, Missouri, where they are raising their two extraordinary daughters.

Comments (1)

Trackback URL | Comments RSS Feed

  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.

Leave a Reply


Notify me of followup comments via e-mail. You can also subscribe without commenting.