is it ethical to foreclose or short sell property?
An Anonymous User asked:
To clarify I can buy a better home for less than my current. I an not sure that I would be able to rent the old for the cost of the mtg…..is that ethical to foreclose on the 1st home?
if you’re not really unable to pay your mortgage – then nope. if you really are challenged — yup.
Foreclose means that a bank is forced to take back a home and then sell it again in an attempt to get back the money they loaned on the house. A short sale is when the owner arranges to sell their home for less than what is owed to avoid the foreclosure. Either choice is bad for the bank and nearly always loses substantial amounts of money for them.
These two options are just a matter of business. Both are attempts to cut loses by stopping the bleeding. There is no question of ethics involved in either choice.