Running Away from Home

TitleRunning Away from Home
Publication TypeCase Study
Year of Publication2011
AuthorsConnolly, P, Althaus, RA, Brinkman, A, Skipper, RB, Cox-White, B
Corporate AuthorsAssociation for Practical and Professional Ethics,
Date Published01/2011
PublisherAssociation for Practical and Professional Ethics
Publication Languageeng
Keywordsbusiness , Personal Responsibility
AbstractWhen Andrea attempted to sell her house for a modest 6% over what she bought it for in 2006, the housing bubble had burst and she could not find a buyer. Andrews friends all advised her to walk away from her home, because California is a non-recourse mortgage state. In these states, a homeowner can effectively void an obligation to pay a mortgage by placing the keys to the property in the mail and sending them to the lender. The second option is to not pay her mortgage for six months and then negotiate with her lender to sell her home at a price lower than the outstanding principal on her mortgage, and the lender would accept the sale proceeds to settle her debt. Andrea is now on her 6th month of not paying her mortgage, and the bank still refuses to negotiate. What should she do?
NotesCase from the 2011 APPE National Ethics Bowl Championship. Copyright, Association for Practical and Professional Ethics, 2011.
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