Paulson’s warning: Don’t walk away

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Interesting, and revealing, comments from Treasury Secretary Henry M. Paulson Jr. (pictured) in Chicago last night. With two of the nation’s most influential newspapers reporting the same trend at the same time -- a rise in ‘jingle mail,’ or ‘walking away’ from mortgages -- Paulson strongly urged homeowners not to walk away. He sounded a bit like a bill collector.

‘Homeowners who can afford their mortgage should honor their obligations. And nearly all do,’ he said. ‘Homeowners who gambled in the housing market and viewed their purchase as a short-term investment may choose to walk away. Those who do this are nothing more than speculators, and they are not the focus of our efforts.’

We have explored this issue to death on the blog, and the views here are pretty clear: Most of you believe that walking away from a mortgage is not a matter of honor, it is a financial decision, and sometimes the smart one, for borrowers. It comes with serious consequences, but a majority of you have made clear you believe it is sometimes the best choice.

Thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo credit: Reuters