white_underwater_and_not_walking_away.pdf

white_underwater_and_not_walking_away.pdf - Arizona Legal...

This preview shows page 1 - 4 out of 54 pages.

Arizona Legal Studies Discussion Paper No. 09-35 Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis Brent T. White The University of Arizona James E. Rogers College of Law October 2010
Image of page 1

Subscribe to view the full document.

W 03_W HITE 10/18/2010 11:36:23 AM 971 UNDERWATER AND NOT WALKING AWAY: SHAME, FEAR, AND THE SOCIAL MANAGEMENT OF THE HOUSING CRISIS Brent T. White* I NTRODUCTION Millions of homeowners in the United States are “underwater” on their mortgages, meaning that they owe more than their homes are worth. 1 Yet, despite all the concern over homeowners who are simply “walking away” from their homes, 2 the vast majority of * Associate Professor Law, University of Arizona, James E. Rogers College of Law. I would like to thank the following individuals for their support, comments, and suggestions: Marc Miller, Jean Braucher, Oren Bar- Gill, Susan Bandes, Vicki Been, Nathalie Martin, Eric Posner, Richard Thaler, Erik Gerding, Carol Rose, Toni Massaro, Sylvia Law, Gabriel “Jack” Chin, Barack Orbach, Ellen Bublick, Barbara Atwood, David Marcus, Melanie Fontes Rainer, and Erick Gjerdingen. 1 . See C ONG . O VERSIGHT P ANEL , O CTOBER O VERSIGHT R EPORT : A N A SSESSMENT OF F ORECLOSURE M ITIGATION E FFORTS A FTER S IX M ONTHS 24 (2009), available at (reporting that between 15–18 million homeowners are, or soon may be, underwater); Summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic , F IRST A M . C ORE L OGIC (Aug. 13, 2009), /uploadedFiles/Newsroom/RES_in_the_News/FACL%20Negative%20Equity_fin al_081309.pdf [hereinafter Second Quarter Negative Equity Summary ] (reporting that 15.2 million U.S. mortgages were underwater in the second quarter of 2009). 2 . See, e.g. , David Streitfeld, They’re Not Paying Anymore , N.Y. T IMES , July 26, 2009, at WK6 (noting creditor concern about debtor default); 60 Minutes: The U.S. Mortgage Meltdown (CBS television broadcast May 25, 2008), available at =related;photovideo; Cavuto: The Deal: Walk Away from Your Home (Fox Business television broadcast Feb. 19, 2009), available at ; Brian Eckhouse, Whether To Walk Away: Housing’s Moral Minefield , L AS V EGAS S UN (Mar. 22, 2009), -away-housings-moral-minefield/; Barbara Kiviat, Walking Away From Your Mortgage , T IME . COM (June 19, 2008), /article/0,9171,1816472,00.html; Liz Pulliam Weston, When To Walk Away from a Mortgage , MSN, /HomeFinancing/WhenToWalkAwayFromAMortgage.aspx (last visited Oct. 9, 2010); John A. Schoen, Why It’s a Bad Idea To Walk from the Mortgage , MSNBC. COM (Mar. 16, 2009), ; Eric Weiner, Why Not Just Walk Away from A Home? , NPR (Feb. 13, 2008),
Image of page 2
W 03_W HITE 10/18/2010 11:36:23 AM 972 WAKE FOREST LAW REVIEW [Vol. 45 underwater homeowners continue to make their mortgage payments—even when they are hundreds of thousands of dollars underwater and have no reasonable prospect of recouping their losses. 3
Image of page 3

Subscribe to view the full document.

Image of page 4

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern