Temporarily could mean decades. Money is business. Banks take risks in loaning and in the case over the past years, they were very willing to not only hand over money to everybody who asked, but they were then more than willing to take those risky loans, splice them all up and sell portions of the loans all over the world as triple A investments. Big financial institutes buy insurance to hedge against losses so their butts are covered no matter what. If insurance doesn't pay out - the government does. Zero risk to the bank. They get the house, the insurance, the bail out - they don't lose or we'd be seeing nil bonuses for any CEO for the next 10 years or until those 15 million empty houses are sold. The person taking the loan, also takes a risk. They expect their investment to profit in a reasonable time, they expect accurate and honest appraisals of those investments and they expect to suffer loss of their investment (including all of their own cash they may have put into the house), a lower credit score and possible bankruptcy if they default.
There are people who have lost money in their investment portfolio's as well...people who are now in a position of walking away, since the loss in their pensions has depleted future income and they realize they will not be able to afford an underwater mortgage and a comfortable retirement as well. Unexpected loss. Possible job loss. Even if those people could remain paying into a negative value property, they would be financially irresponsible to do so if it meant depleting their retirement accounts to do it. There are many variables into why people are taking that route - I certainly wouldn't call it a moral issue. It's their business and it needs to be addressed as a business. The banks have screwed over a lot of small businesses during the past few years - cutting off credit, reducing lines of credit, and calling in notes - refusing to loan out money when they've been asked to do so and been given funds to accommodate requests. Money is business - a home is an investment - it's your money - make it work for you and not for them because in the end, you are nothing but another transaction and feelings don't factor into it. sammieswife.