Hey, I have an idea . . . let’s all default on our mortgages!
It isn’t really a surprise, is it? Enough people now see this kind of thing as “standard operating procedure” that the Los Angeles Times is reporting on an epidemic of folks walking away from their mortgages as a strategic financial planning maneuver.
So today’s question is this: Is taking whatever actions are necessary to come out ahead an acceptable way of dealing with your existing contractual obligations?
I’d like to counter-argue this point as “it’s what the banks do, so do it to them!”, but it isn’t, actually; what banks do is work according to existing contracts. And yes, they take advantage of every possible loophole to see that their desire for more profits through business change can be made into your life change. But you signed that contract.
On the other hand, there’s no reason in the world you can’t approach your bank to negotiate a new deal.
And that’s the lesson here: business change often comes about when you look at a contract from a new perspective, and renegotiate. Most people we work with see that as too hard, and so they avoid it. The people who hire us to help create their business change know better.
Ask for what you want. There’s no harm in that.