People in many states are walking away from their mortgages. These people are not suffering a job loss; they are not burdened with exorbitant medical bills; nor are these people incapable of paying their bills. These people are recognizing that the value of their homes are worth less than what they owe on the house… in other words, they were “under water”.

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An Arizona legal study written by says banks exploit consumers’ sense of guilt and shame to prevent them from walking away from their loans. “It’s a unique time… and people feel too shameful… and people might be better off making economic, rational decisions…” says the study.

If Wall Street is able to make economic decisions in their best interest regardless of the ramifications upon Main Street, why shouldn’t Mr. and Mrs. Joe Smith do the same?

Richard Fuld, CEO of Lehman, recently ranked as the worst CEO ever, still pocketed over half a billion.  Stan O’Neil, CEO of Merrill Lynch walked away with $165 million after his company posted a $8 billion loss. And this is simply the tip of the proverbial iceberg.  Morgan Stanley walked away from five San Francisco office buildings, and other companies are writing off losses while we the tax payers are left holding the hot potato.

A home purchase is a business transaction. Mr. and Mrs. Smith are the CEO and CFO of the Smith family, yet they operate under completely different rules. Should they be allowed to make economic decisions oblivious to societal pressures and poor credit?

So who pays the bill for those who walk away?

You, me, and our neighbors, at least those who stay with their mortgage.
And newly formed companies like “You Walk Away” are popping up to help homeowners make economic decisions and walk away from their loans.

Is this right?  Does “right” have anything to do with it?

Share your thoughts here.