If I had my back to the wall like you did, I might be more inclined to agree with you.

But I think you’re blurring the line between the rules set by others, and the ethics set by yourself. True, the banks set the rules, but they don’t change who I am in terms of morals, ethics, and character. To allow the banks to do so – as they’ve done with you and many others – is just another huge tragedy in this whole economic crisis, imho.

If you’re of a mind to ‘Do unto others as they have done to you,’ then I hope it brings you peace. But that’s just not the way my mama raised me.

We have been hurt by the current economy and two bad tenants, back to back. I also suffered a massive heart attack several months ago. We have had to spend thousands of dollars to fix what the tenants have destroyed. We have not only maintaned the property for our own benefit but also out of an obligation to protect the banks collateral interest (read your mortgage).

I think that the question is not entirely about ethics but also about a financial decision. I enjoyed the one comment about playing by the rules. I too believe in playing by the rules. The problem is Wall Street and the banks keep changing the rules.

It appears that the rules the banks want us to play by are not the same rules they want to held to. They expect us to continue to meet our obligation, no matter what our situation or unforeseen changes. Shouldn’t we hold them to the same standards?

As soon as the banks had their own financial woes, the rules changed. They had no problems making a business (financial) decision to default on their obligations. In doing so they effectively held us hostage and said “bail us out or else” Although I am not in favor of the bailout, I do understand that the alternatives could have been worse.

I see no ethical problem in playing by the same rules that they have established. I do not mean that we should fabricate a hardship situation but if it is real, why shouldn’t we ask for help or some relief…they did.

The banks did not consider their ethical obligations and I do not see any of the CEO’s, who made billions, returning the money. They have established the rules and I think it is fair to play by the rules as established.

None of the bankers, brokers or insurers risked their own personal financial wellbeing. I think it is time for all of us to say, “Hey! you made the rules” “My financial wellbeing is at stake, help me or else” To jeopardize your own and your families wellbeing to satisfy some perceived ethical dilemma is exactly what the banks are counting on.

If you wind up broke and on the street, do you think the banks will consider their moral obligations to this country or their customers?

The bottom line is all they are concerned with. I think we should play by the rules that they have established. Your decision should also be your bottom line. It is not an ethical question but a financial decision

There were some comments about signing on the dotted line and being responsible for our own decisions. I agree, however, the banks also signed on the dotted line and made promises to their investors and customers. Why is it that their default on their promises is o.k. but ours becomes unethical. Rules is rules folks. I for one have no problem playing by the rules as long as we are all playing by the same rules.

When I made money, the government took their “30% no-risk” tax benefit. Since I had a stock loss, the government allows me only a $3,000 tax loss carryover. I am STILL carrying over about $40,000 in stock losses fully 10 years later! All a sham, crime, whatever you call it. When Wall Street was fined hundreds of millions for their improprieties during that time, I did not see a DIME of that money!

Fast forward 7 years to when I purchased a townhome for $260k. Yes, I signed and it was my choice. The builders pumped up the price of the units and when the market tanked, they did and continue to sell units for about $160k, almost $100k less then what I paid just 3 years ago. And the banks in the mean time made hundres of millions of dollars on these risky loads (thank God I did not do an ARM rate they tried to push me into!)

So, I have NO problem calling the mortgage company and asking them to drop my rate 1.5 points. Really, they will still make hundreds of thousands of dollars over the course of the load. They still borrow money at 1.5% and lend it for 6. I have a 6.125 80% loan and an 8.9% 20% 15-year loan (I had no money down and am now in a neg equity situation) and will ask them to roll it all into a 5.5% 30 year loan and if they don’t, I’ll walk away from a home I have neg equity of $70k…and I’ll sleep well. I have no problem sticking the Man because I’ve been stuck time and time again. Chew on that for a while…

I’m in THAT exact situation. Lost my job in June of 08, been making all my payments on time and have good credit. Being as times are tough (and getting tougher day by day) I contacted Countrywide Mortgage to see about having my interest rate adjusted so I could continue paying them for a few months longer (I’m hoping to be employed soon!). I was told by them and I quote “when you’re hardship is resolved then contact us and we’ll help you”.
Hell, I even asked them if they were hiring!
Well, when my hardship is resolved I’ll be leaving their asses and not looking back!! THANKS Countrywide for your help in my time of need…me and my 2 children appreciate it!!!

I would like to add that I agree that the current situation is a lot like a homerun (I was a pitcher back in my golden years). I do believe that when we sign on the dotted line we seal our own fate and it’s up to each individual to negotiate their situation. We cannot place the blame entirely on the banks. We must exercise common sense and judgement with regards to budgets. We must not let greed get in the way of reality. We must anticipate that there will be bad times and consider all worst case scenarios. These are the things that some of the most successful people in the world do on a daily basis.

If you walk into a bank and believe everything they put in front of you and don’t ask questions, then you’d might as well just watch every pitch go buy abd pray that you get 4 called balls before you get 3 called strikes!!!

My current interest rate is 6.5%. My current payments are about $960 a month. I have them taken directly out of my checking account in weekly installments. This allows me to make one extra mortgage payment over the course of a year that goes directly to my principle. I also add on ten extra dollars per week. I know that doesn’t soun like much, but with 52 weeks in a year, it adds up to an extra $500 going straight to the principle.

In my opinion, I think that the banks should be willing to work with people like me, not just people that are defaulting on their loans and facing foreclosure. I may be paying my bills on time, but I still could benefit greatly from a lower interest rate. I mean, just because paying my mortgage is top on my priority, and it will always get paid first, that doesn’t mean that I don’t struggle just to buy groceries.

I don’t know if I would qualify for a lower interest rate. I have no credit card debt (just paid them all off), but I still have some medical debts that are weighing me down. I may call and check with Wells Fargo and see what they have to say. I guess it coudn’t hurt!

I’m not saying it’s fair or right, but it seems like a practical matter matter to me.

Keep in mind the topic here is simply asking my mortgage company a question. I will answer any questions they have truthfully. Is there harm by asking? I don’t see how there’s a line between right and wrong there.

If it’s not fair, the mortgage company can simply say no. We both hang up the phone amicably and move on.

I hope that’s not truly the case.

The reaction to the hard economy is a moving target. Companies are adjusting their practices all the time. I’d say go for it.