Home > Foreclosures > Should Your Short Sale Debt Be Forgiven?

Yes, a controversial question: Should banks forgive your short sale debt? By that I mean, your credit gets hurt a little, but you walk away with tens of thousands of dollars forgiven?

How fair is it to your neighbor who purchased his home at or around the same time, perhaps paid around the same price. The difference is that he could continue to pay his mortgage, did not displayed economic hardship and will continue to make his payments he promised to pay back when he signed the mortgage note?
His home value fell just as much as his "short-sale" neighbor did.

How fair is it to your bank who lend you the money you signed your name to promise to pay back?

Whatever happened to "promises" we make to people? Shouldn't our words and actions be worth the weight in gold?

If Short sale for properties are acceptable in this society, shouldn't we extend our mercy to car loans and other consumer related loans?

What if the situation is turned around? What if we are not in a bad economic crisis? What if the properties we purchased all doubled its value two times in two years we owned it? Should we share our profits with our bankers who helped us in the first place?

I may have touched the emotional side of this circumstance. I know bad things can happen to good people. I understand that. But in a world where we first spend, spend, spend and never had to think about the re-paying consequence, it has contributed to some of the problems we have today.

I'm sorry but I don't know if I should feel bad when I show houses in and around my area with Short sale as part of the description. Some of these houses are showcase and model home qualities. By that, I mean fine furnishings, top of the line home decor and furniture. What should I think?

I believe that there are many good neighbors around here who will pay back every penny that is owed. Those that have to take the short sale route doesn't make them BAD people. We do what we have to do. But our promises to re-pay must be placed as a very, very high priority.

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