Bellevue WA – Wall Street Fat Cats say homeowners shouldn't walk away from upside down homes. Why? "If you do it, then everyone will start doing it", they say. "It isn't moral. People should own up to their commitments.
People should be responsible. This is more than just a contract. It's what holds the entire economy together." However, those same rules don't seem to apply to them.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Turns out Wall Street firm Morgan Stanley strategically defaulted on their upside down properties. Here is the article from Bloomberg: Morgan Stanley to Give Up 5 San Francisco Towers Bought at Peak.
Here is what the article says: "Morgan Stanley, the securities firm that spent more than $8 billion on commercial property in 2007, plans to relinquish five San Francisco office buildings to its lender two years after purchasing them from Blackstone Group LP near the top of the market.
The bank has been negotiating an “orderly transfer” of the towers since earlier this year, Alyson Barnes, a Morgan Stanley spokeswoman, said yesterday in a telephone interview. AREA Property Partners will take over the buildings. Barnes declined to say when the transfer will occur.
“This isn’t a default or foreclosure situation,” Barnes said. “We are going to give them the properties to get out of the loan obligation.
The Morgan Stanley buildings may have lost as much as 50 percent since the purchase, he estimated.
Morgan Stanley bought 10 San Francisco buildings in the city’s financial district as part of a $2.5 billion purchase from Blackstone Group in May 2007. The buildings were formerly owned by billionaire investor Sam Zell’s Equity Office Properties and acquired by Blackstone in its $39 billion buyout of the real estate firm earlier that year.
Morgan Stanley, based in New York, was the biggest property investor among Wall Street firms at the time of the purchase. The transaction made the company one of the largest office landlords in San Francisco, with the purchase giving the bank 3.9 million square feet of office space there.”
Pretty interesting. If an ordinary guy walks away from his upside down home, then that makes him a immoral deadbeat. "He's working the system", the Wall Street people say.
But, to them it's a moral business decision. "We're doing what's best for our stockholders", they say. "That's our obligation and duty."
Here is my question. Doesn't a parent have an obligation to do what is best for the stockholders in their family? Let's say that they can save hundreds of thousands of dollars in mortgage payments.
As a result, little Timmy will be able to attend college when he grows up. Isn't it their moral obligation to do what is best for the stockholders in the family?
Please let me know what you think. Put your comments agreeing or disagreeing below.
Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at paulandc@yahoo.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (206) 261-7355
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
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Thanks for reading this, Paul Nelson.
Paul is a Real Estate Agent at Force Realty. Bellevue Short Sales Realtor:
Phone: (206) 261-7355. paulandc@yahoo.com.
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