Is it Immoral, lacking in Integrity to Stop Paying Your Mortgage?

If one has had a problem that is a hardship then Loan Mod Short Sale or Foreclosure are all part of the possible outcomes.  So is bankruptcy.

Nope, everyone just thinks it is the easiest way out.

A common comment that I hear is: "Why can't I buy my home back at 35% of what it is worth?"  "Why do I have to lose my home to someone else who can buy it (example $300,000. for $100,000.)...what do you say...You suggest they refinance...they just say they tried.

This is just not fair for at least 50% of folks who were "______" by lenders...who never chose to explain a balloon mortgage, just chose to take advantage of the market.

Just my $0.02

I feel sorry for the people who are a product of the "recession", and the ones that can not actually pay their mortgage.  But the people that stop making there payments becuase they think it is everyone elses fault, or have consulted one of the lovely attorneys to do a loan mod and are told to stop, they make me very angry....

That is a decision that many Americans are facing each and every day.

Some that are walking away have savings and investments, the lender will go after these and most likely get a judgment on them.  Not a very good idea in many cases to walk away.

Susan, Harry has reblogged this.  That is how I found it.  "Is it moral or lacking integrity?"  I've been asked this question too, "Should I quit making my payment?"  I have short sales and loan mods in process and other clients I'm talking to about this.  In my opinion, if you are willing to ride the next upswing in values and not allow the bank to renegotiate with you for more, why should you be allowed to renegotiate with the lender now for less? 

If there is a true hardship, since the programs exist, I have no problem helping others modify loans.  If the situation is just a matter of, "everyone else is doing it, I can afford my payment but why should I?"  Than that is the moral or ethical failing and I pass on those clients. 

If, on the other hand (there's always an other hand), values had gone up and up, would it have been appropriate for the homeowner to fork over some of that equity to the lender...just because the wind fell upward?

As the post suggests, this is not an easy moral question.  Indeed, it is a national dilemma.

(Hardships are hardships.  Options are options.

One person's easy call is another's morality play.)