JudoWolf.com

Morality (according to Wikipedia) is a system of conduct and ethics that is virtuous. Today, many are walking away from their homes even though they are able to pay their mortgage. The reason used is the value of their home has dropped, so from a purely financial perspective to leave the home makes sense. The mortgage holder’s position is they have no obligation to the contract and will not renegotiate a new mortgage. The homeowner realizes walking away will affect their credit score, but will take the consequences, as credit scores no longer carry as much weight. The mortgage holder has no choice as in some states they have no recourse. The only reason some people continue to pay for an asset, which has dropped in value is because of morality. Let us examine how society’s morality is in a state of flux.

Owning a home was the American dream, which had two partners the homeowner and bank. The mortgage was held by the bank and the homeowner would pay monthly till the obligation was fulfilled. Even though it was a written contract, it was viewed by both parties as a moral obligation. All dealings between the owner and the bank were negotiated by the moral standard. When foreclosure was eminent, the bank would do everything to assist the owner, as it was their moral obligation. Around twenty years ago, the bank lost their moral character and viewed foreclosure strictly as a written contract. Society viewed this as a black mark affecting the person’s credit score but worse their moral character. People would do anything to prevent foreclosure as it was considered one of the big three moral sins along with bankruptcy and a low credit score. This completely changed the playing field as the bank viewed themselves as an institution and the contract superseded moral character. Foreclosure was a business deal with no mitigating circumstances, and if the owner could not pay, they would be evicted. Banks became only concerned with institutional perpetuation, as they no longer had a moral obligation.

Institutional perpetuation is the new moral standard. The survival of the institution has replaced the moral fiber held by the people. Major financial institutions during the financial crisis walked away from building they purchased when the value fell, which is no different when a homeowner who can pay walks away. Yet the media only spoke about it in passing as if it was all right. Another example is the Catholic Church in the way they handled the sex scandal. Over many decades, they continually transferred priest to other parishes to avoid a scandal. The leaders of the church were aware of these priests and they never raised a hand or notified authorities to stop the abuse. The Catholic Church must endure no matter what the human cost. Its self-perpetuation is the goal and has been for centuries now. The sex scandal is only one of the skeletons kept in the closet and the others must never be exposed no matter what the human cost.

People are more and more disillusioned by major institutions and walking away from their homes is telling them – Enough is enough. Why should we be held to a higher standard, which doesn’t apply to them? People do not understand this thinking and wonder how it will change the country. The young are fed up and are slowly starting a revolution of change which will affect – all state and religious institutions, the banking industry, Wall Street, insurance companies, credit and how it is perceived, and hopefully we will return to the moral way again.

With kindest regards, Judowolf