Is It Wrong To Walk Away From My Mortgage?

Written by Say So! Editors

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The world is currently in the midst of unprecedented economic turmoil. Often termed The Great Recession, the economic downturn of the last couple of years has placed people in uncomfortable circumstances. Many people have found themselves owning homes that they can not afford. And those that can afford their monthly payment are more than likely saddled with a property that is now worth less than the value of the mortgage loan.

Recently 60 Minutes featured a story ( Mortgages : Walking Away - 60 Minutes - CBS News ) that focused on homeowners that are walking away from their homes and mortgages. Homeowners that purchased homes in the height of the booming real estate market are now finding that the price they paid for the home was an inflated figure fueled by a speculative housing market. They are now making monthly payments for property which is not worth the value of the loan. What is a homeowner to do in this situation?

What does the Bible say about walking away from your mortgage? The Christian personal finance blog http://www.christianpf.com has done some research on this:

What does the bible say?

I found two scriptures that provide some light on it…

“If a man borrows anything from his neighbor, and it is injured or dies while its owner is not with it, he shall make full restitution.” Exodus 22:14

“The wicked borrows and does not pay back, but the righteous is gracious and gives.” Psalm 37:21

READ THE FULL ARTICLE AT http://www.christianpf.com/walk-away-from-mortgage/

A mortgage loan is basically an agreement or contract between you (the homeowner) and the bank. The Bible is quite clear when it comes to honoring a contract. God does not specify that a contract is only to be upheld when the terms are favorable. Agreements are to be upheld regardless of changes in the circumstances of a participating party. Christians are charged to trust God in the times of plenty and the times of lack. Faith is supposed to be the cornerstone of our earthly existence.

Join the conversation. Leave us a comment. Would you walk away from your mortgage if the "circumstances were right"?

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Comments

0 # Robert Brantley 2010-05-13 16:25

Contracts are to be upheld or re-negotiated. Re-negotiation is not abdication; rather, it is a responsible act toward ultimately upholding the contract. In the instance of the current mortgage crisis, re-negotiation is prudent, probably necessary, and is absolutely biblical, in that it is an effort to effectively steward an obligation that is currently outside of the bounds of economic and social justice. LET THE REDEEMED OF THE LORD SAY SO!

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0 # Valerie 2010-05-31 09:04

If it weren't for this option many would die under the pressure. Not everyone has a permanent position or knows the future. How can anyone be absolutely certain that their income will remain as it was when they purchased the house! But we try anyway to improve ourselves and have a "decent" place to live! Are you tuned in to to the rising costs of apartment rentals! How can people of God be so "cold" to think that God is standing there ready to punish? He is a God of compassion! He knows all and knew of the fall of mortgages. So I say, yes to re-negotiations!

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0 # Kwe Clay Parker 2010-05-27 15:57

Most mortgages are for 30 years or more. Some events make honoring debts over that length of time impossible. I do not believe that God convicts those with good intentions and acted responsibly, but encountered hardship. We are believers in grace, mercy and forgiveness.

The Bible speaks specifically on debt repayment and christian accountability. The word also specifies acceptable lengths of time that debts should reasonably be amortized. Quote:

At the end of every seven years you shall grant a release of debts. 2 And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD’s release. (Deuteronomy 15:1-2)

The irony here is that the 7 years also coincides with the time allotted to most derogatory marks remaining on the credit report and also the discharge of most bankruptcies.

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Thursday, May 27 2010