The rich and successful understand contracts


According to Carol Pogash in “Biggest Defaulters on Mortgages Are the Rich”

The rich and successful often come naturally to this sort of attitude, said Brent T. White, a law professor at the University of Arizona who has studied strategic defaults.

“They may be less susceptible to the shame and fear-mongering used by the government and the mortgage banking industry to keep underwater homeowners from acting in their financial best interest,” Mr. White said.

According to a commenter

Businesses do this all the time; they abandon investments that don’t turn out right. Major real estate firms do this with multi-billion dollar properties, and the mortgage companies know this. We are just seeing the same thing happening on a smaller scale. It is dishonest for the mortgage companies to insist people pay a ridiculous mortgage (that the banks willingly wrote), while acknowledging that large businesses do the same thing. Just like the homebuyers, they made a bad investment when they wrote those mortgages, and they have to suffer the consequences.

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