Consider a physical assault. The law is designed to prevent that, first by applying criminal penalties, and second by allowing punitive damages. Punitive damages is an amount of money a jury is entitled to award to a plaintiff against a defendant and is supposed to discourage the person who committed the assault from ever doing it again and “send a message” to others who might be thinking about doing it that “crime doesn’t pay.” These are the big judgments you hear about, and they’re designed so that you will hear about them and not do what the defendant did. Therefore, if you stop paying, they know what they can do with the house! And they may sue you and try to get you to pay a judgment.
The other wild card in the deck has to do with a “fraud” the banking industry is perpetrating on the public. But I’m not sure the rest of the world sees eye to eye with me on that. Should You Walk Away From A Recourse Loan? Remember that a recourse loan means that the bank reserves the right to sue you for any payments not covered by sale at foreclosure. They’re saying to the bank, in effect, “You want it? It’s yours.” Should you? Before we tackle that question head on, let’s step back and ask, how did so many people come to be underwater on their home loans? You should ignore anybody who suggests that you have a moral duty to “bail out” the bank from its mistake at your expense.
Instead of actually dealing with the problem, the bankers persuaded the group setting accounting standards to stop forcing them to mark the mbses to market. Instead, they “mark them to make-believe.” It’s a giant fraud that allows the bankers to pretend they’re making money and give themselves huge bonuses while hiding the fact that most of the banks are still broke. This can take a few hours, or longer, it just depends on the jail and there is nothing that the bondsman can do about it. If you cooperate with the bondsman and work closely with him throughout the process, it will go very smoothly and you can bail someone out of jail in a matter of hours!
Now you know why. In most cases, if you break a contract you have to give the other guy the profit he expected to make out of the deal. Then you’re free to go your merry way looking for better things to do. He’s making all the profit he ever expected, you’re only spending $4,000 on the milk plus the $500, so you save $500, and the guy who sold you the milk may also make a profit if he can produce it for less than the original vendor. Is your home mortgage “under water?” If you owe more in payments than you could get by selling, you’re under water. A lot of people in the U.S. are underwater right now, and many of them are choosing an option most would not have considered a few years ago: they’re walking away.