The Morality of Strategic Default
Arizona Legal Studies Discussion Paper No. 10-15
13 Pages Posted: 1 May 2010 Last revised: 29 Oct 2010
Date Written: May 22, 2010
Responding to those who argue that homeowners who strategically default on their mortgages are immoral and socially irresponsible, this article argues that breaching a mortgage contract is not only morally acceptable, it may be the most responsible course of action when necessary to fulfill more important obligations to one’s family.
Keywords: mortgage, strategic default, contracts, ethics
JEL Classification: K11, K12, K2
Suggested Citation: Suggested Citation