Just Drop off the Key, Lee

Just Drop off the Key, Lee
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Just Drop off the Key, Lee
The case study addresses the situation that Fig and Kollman are in; it was hard for them to predict that in coming years, prices would drop drastically and they would have to pay more money. In such a scenario, it would advisable to analyze the economic and financial market and also the terms of the mortgage contract to avoid unfortunate instances. The main ethical issue in this case is that they felt the house was not worth the amount they were charged for it. However, it would only be ethical if they continued paying their mortgage premiums since they have a well-paying job and it is affordable to them. They also had the option of waiting until the market prices improved and this would also see the valuation of their house increase. The ethical issue in this case was caused by the fact that they failed to analyze the market properly.
I opine that everyone who borrows money either from another individual or financial organization has the moral obligation of repaying it back (Pavan & Barreda-Tarrazona, 2020). The repayment should also take into consideration the terms with which the money was borrowed. One has the moral obligation of repaying it back because they borrowed the money from an individual or organization as opposed to getting it as compensation for work done or services offered. Therefore, the money has to be repaid together with any interest that is accrued.
It is also advisable that one familiarizes themselves with the mortgage contract because they can engage themselves in activities involving mortgage. The contract dictates that if there is a case of damage resulting from natural calamities like water or fire, then the individual is legally allowed to default their mortgage (Bratu, 2020). However, if the contract does not mention anything to do with these factors, then one is obligated to pay their mortgages as agreed upon on their contract. It is also notable that most individuals insure their cars, houses, property, and other investments so that the insurance company can cover their costs and expenditure in the event of unpredictable natural calamities. As such, reading and clearly understanding the mortgage contract enables one to understand whether or not the investment or house that they are purchasing is insured by the insurance company.
In addition, if an individual has to pay debts, then the...