Are you an idiot to keep paying your mortgage?

SF Gate ^ | 16 Nov 2008 | Kathleen Pender

[BGHater]

Should you keep paying your mortgage?

If you have significant equity in your home, absolutely.

If you don't, it's getting harder to answer that question, especially when our government keeps giving people who owe more than their homes are worth so many reasons not to pay.

Last week, the government announced a program that will substantially lower payments for many homeowners who have little or no equity, but only if they are at least 90 days delinquent.

Critics say the plan, which applies to loans owned or guaranteed by government wards Fannie Mae and Freddie Mac among others, could encourage people to suspend payments.

But what about the moral obligation to pay off a debt?

Elected officials have been chipping away at that by blaming the foreclosure crisis largely on predatory lenders. In a campaign fact sheet, President-elect Barack Obama says he "recognizes that the real victims in the subprime mortgage crisis are not the lenders, but the millions of borrowers who followed the rules and whose only crime was taking out mortgages that lenders told them they could afford."

Last year, Congress started removing some financial hazards of default when it passed a bill that temporarily waives the income tax on mortgage debt that is canceled when a homeowner is foreclosed upon, sells a home for less than the remaining debt (a short sale) or gets a loan modification that reduces the principal balance.

The tax waiver originally applied only to debt on a primary residence canceled in 2007, 2008 or 2009. Last month, in the bailout bill, Congress extended the waiver until 2013.

[cajungirl]

we must be of different generations.

I was taught “your word is your bond” and “never welsh on a contract” and “your good name is all you have so keep it good” and “decent people pay their debts”

Sorry,,it isn’t a business to me.

[surfer]

your right...otherwise your name would be Mudd...

[fanfan]

Exactly ! Efficient breech - it’s a business decision, not a moral judgment on you.

My God! Does nobody have any morals anymore?

You agreed to pay the money, didn't you?

Would you sell yourself?

How much is your word worth?

[nicola_tesla]

Corporations are not moral agents, and contracts do not imply morality. That’s why we have contract law. I guess you believe we should brig back debtor’s prisons and debt slavery too ?

You are good sheeple. You have learned your lessons well.

[fanfan]

I agree with you, but apparently we are sheeple for keeping our word.

Who knew?

[fanfan]

I guess you believe we should brig back debtor’s prisons and debt slavery too ?

We already have that. Don't you know any divorced fathers?

[cajungirl]

INsulting is not an argument. But you know that.

[CottonBall]

Disagree. I think it is morally wrong to not pay a debt you incurred when you are able to pay it. Even if it is effecient not to pay it. Honorable people do not do this. It is stealing from someone. Just my opinion. I wonder what others think

I think you are absolutely right. It's thinking like a liberal to say just walk away from a contract you signed. There's no character, honor, or class in that.

Can you imagine the Greatest Generation even considering such a thing? We've gone very quickly downhill into selfishness and moral collapse since then.

[CottonBall]

Your household is no less of a business than any corporation. Run it as such.

This line of thought is why liberals say corporations are greedy and evil.

Character, honor, and doing the right thing are worth much, much more than money. Too bad the younger generation doesn't have a clue and will sell their souls. For very little.

[CottonBall]

practicly own my house, I own every stick of furniture, clothes etc in it..etc Sorry I cannot tell you why...

Because you have class ;)

[CottonBall]

I believe the moral obligation to pay off your debts is something that is taught in the home. Some kids are raised to pay their bills like there parents do and others are raised to scam the system like their parents do.

Excellent post. (And hits on the difference between libs and conservatives as well!)

[CottonBall]

By the way,I love real men that can fix things! I’ve always told my girls..” Marry a guy that can fix things”.

Same here! If I guy has to call someone to fix stuff around the house, I find it very odd. (And not very manly either.)

[CottonBall]

As a matter of FR etiquette, you should include a derogatory statement about lawyers.

LOL! (ps. Wasn't Buckhead a lawyer?)

[Publius Valerius]

This discussion reminds me of Red Green, who reminds his viewers at the end of each show that “If women don’t find you handsome, they should at least find you handy.”

http://www.pbs.org/redgreen/about.html

[CottonBall]

Agreed. We are going to live on the bare minimum over the next four years. I’m considering not buying anything outside of everyday things...just to keep sales tax revenue out of the hands of my blue, blue ‘State Leaders.’ I welcome the challenge, and I hope others do, too.

Funny, I was thinking along the same lines. With RINO-Arnold increasing the sales tax here by 1.5% to pay for all the illegals, we've decided to only buy what we need until we can leave Mexifornia. I've been wanting to do a Henry David Thoreau thing and get all the frivolity and unneccessary complications out of my life anyway. Drive life into a corner and really live it - without distractions. And what are all the toys I have if not distractons? (I CANNOT put my books into that category, however!)

[CottonBall]

My thought is that people are going to want to sell off so that the gains and/or losses are counted towards this years taxes instead of taking the chance on what will happen with taxes for 2009. Something about *sharing the wealth* would leave me uneasy about investments, starting Jan 20, 2009.

No doubt. I took all our money out when the market hit $11K - and after Obama was elected, vowed to not put it back in. We've also been trying to get all the equipment we need for our business THIS year, since there's a good chance Obama and the Dems will reduce/eliminate some of the business deductions.

Along with that, there's really no point to working too hard, is there? Our business is something we love to do and it's a 2nd income, but I'll be damned if I'll sweat and work just to pay higher taxes! They're already high enough and need to be cut by 50% to make it worth it. I think most don't even realize how much they pay in taxes, especially those that are a 2nd income. The math is easy (for us, 28% fed, 9.3% state, 7.65% SS = 45% down the toilet) - but many I try to show this are either dumbed down by public schools or are in denial.

[CottonBall]

Corporations are not moral agents, and contracts do not imply morality. That’s why we have contract law. I guess you believe we should brig back debtor’s prisons and debt slavery too ? You are good sheeple. You have learned your lessons well.

No, you havew learned the lessons from the liberals well. Take as much as you can and morality, character, and the rest of the nation can go to hell! Lovely message to pass onto your children.

I'm with cajungirl and fanfan. I like to hang around people with dignity and class - people that can be trusted and aren't in it just for themselves and what they can screw out of others.

[fanfan]

Take as much as you can and morality, character, and the rest of the nation can go to hell! Lovely message to pass onto your children.

So true, Cotton Ball.

I once asked my father, who grew up during the depression, why people didn't just steal, and take what they wanted from others. He explained that in order to have a civilization, it required all of us to be "civilized". If we couldn't trust each other, civilization was lost.

When someone with the 'values' of poster "nicola_tesla" continues to be a FReeper, one is forced to worry about our children's future.

*shudder*

[cajungirl]

The poster is suggesting something new even.

Defaulting on a mortgage happens for many reasons and when one does, one expects consequences i.e. poor credit rating, inability to get a new loan. The remedies in the contract,,

What the poster is suggesting is to quit paying to get a payoff from the government. As if that was a moral option because of a contract.

As if moral values had no place in ones contractual duties. As if consequences were not to be considered.

[fanfan]

Wow, what a succinct way of putting it.

Thanks.