Discover the Financial Principles of the Bible

Should A Christian Just Walk Away From Their Mortgage?

It’s no secret that this country has been through (and continues to experience) a housing crisis. Home prices in some parts of the country have fallen by 40 – 50 percent. Falling home values coupled with high unemployment levels has led to record numbers of foreclosures.

Many people have no choice in the matter. If they have lost their job and can no longer make their mortgage payments, then foreclosure is usually inevitable. In this article we will not focus on whether or not people bought more home than they could afford in the first place (and many did).

However, there are an increasing number of people that are simply walking away from their mortgages. They can afford to keep paying their house payment, but they have decided that it is no longer a good investment.

These people just stop making their monthly mortgage payments and pocket that savings each month. They know that it could take over year before they actually have to vacate their home. It also doesn’t seem worth it to list their home for sale since it’s worth less than their current mortgage payoff.

These people are called strategic defaulters. They can afford to continue paying their mortgage, but instead make a strategic decision to not do so. In just the first six months of 2010, Experian estimates that roughly 275,000 people just walked away from their mortgage.

It’s true that if you owe significantly more than your home is worth, then it is probably no longer a good investment. However, that doesn’t make it right to simply renege on your financial commitment. A Christian that is trying to follow the financial principles of the Bible would never become a strategic defaulter on their mortgage.

Withhold not good from them to whom it is due, when it is in the power of thine hand to do it. Say not unto thy neighbour, Go, and come again, and to morrow I will give; when thou hast it by thee. Proverbs 3:27-28.

If you have a financial obligation, whether it is your mortgage or something else, then as a Christian you should honor that commitment. You should try to do everything in your power to avoid just walking a way from your mortgage.

Filed in: Christian Finance, Debt & Credit, Real Estate, Stewardship

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