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Foreclosure and the Aspect of Morality - Essay Example
Author : carmelahirthe
Pages 3 (753 words)
Foreclosure and the Aspect of Morality Name Institution Date Foreclosure and the Aspect of Morality A voluntary foreclosure is a foreclosure proceeding initiated by a borrower, instead of a lender, in an attempt to avoid further payments. This allows for a lender, in the event that there is a loan default, to have the mortgaged property sold as a way of covering some or all of the remaining debt…
This paper expounds on the morality aspect of foreclosure stating that that voluntary foreclosure is justified while involuntary foreclosure is unjustified. Reasons Both borrowers and lenders are trying to make money. The lender will seek to gain financially from selling the property and no one complains of its immorality. The morality of business allows the borrower to reasonably attain utmost advantage from their property as possible (Hagerty, 2009). What happens when the property loses its value? What moral incentive allows one to proceed chasing a valueless acquisition? There is none whatsoever. In a bid to make as much money, each seeks to take the alternative that suits them best. If the property loses value, the borrower may tend to voluntary foreclose the property and this is morally justified. Too many foreclosures in one area form a bad place to live, even for those who are paying their bills (house payments). The main reasons for foreclosure have mainly been related to displacement, crime issues and shattered credit scores (Rhodes, 2008). ...
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