Case Paper

By: Stacey Curry

Business Ethics

Upper Iowa University

Kalia McHan

The mortgage business at one point was really booming and it seemed just about anybody could finally get their dream home at what seem to be a dream home. Until the reality of it all kicked in and homeowners were realizing that they made a big mistake, saying “what have we done.” That’s when software engineer, Derek Figgs and Benjamin Koellmann, a business man had to make some tough decisions that could affect them for the rest of their lives.

The real estate left a lot of people in a money bind, at times like this it was testing homeowners’ morals and their ethics as well. The year 2010 is when the mortgage industry realizes those fixed mortgage rates, or special “balloon” payment paperwork that the homeowners agreed to realize that they may have singed something they have no control over and maybe should have done some research before signing. The software engineer, Derek Figg for example purchased a $340,000 home, two years later the value dropped to less than $230,000 but the bank was saying he still owed $318,000; Mr. Figgs decided to up and leave gave the keys back to the bank.(New York Time, Feb.2010). Benjamin Koellmann, business man was in the same situation but he decided to stay in the apartment that he purchased, his reasoning was because he signed paperwork and agreed to pay the mortgage since it was money that was borrowed and agreed to pay. Also, Mr. Koellmann states that, “a promise is a promise”, and he is afraid that skipping out on the mortgage might hurt him with a future employer. If I were in Mr. Figgs or Mr. Koellmann situation, I have to agree with Mr. Koellmann I would not default on my loan due to the fact I would be afraid of not being able to qualify for another house or my family be without. The other factors I would take into consideration I would never just give up and take the easy way out like Mr. Figgs did and default my home loan before doing more...