Foreclosure Wickedness

Recently, CBS News ran a story about foreclosures. Not really a new topic given the current economic environment.

But reporter John Blackwell took a look at wealthy people in foreclosure. These particular homeowners are people who own million dollar homes and are able to pay the mortgage yet make a "business decision" and choose not to pay what the mortgage holder.

The reporter interviewed a guy who said that his house was worth $400,000 less than what he owed and it didn't make sense for him to sink money into a bad investment even though he could afford the $10,000 monthly mortgage payment. The homeowner said that the bank could take the loss.

Banks are even more reluctant to foreclose on million dollar homes since these homes cost a lot just to keep in sale-able shape. And a foreclosed million dollar plus home brings down the values of the neighborhood. One estimate is that one in twelve homes nationwide is in foreclosure and the rate is one in seven homes valued over a million dollars.

I want to be really clear that I am not talking about the average homeowner facing foreclosure due to job loss or other reasons. And there have been plenty of reports of banks abusing the foreclosure process. A lot of people are in desperate financial situations and foreclosure is the only way out for many people. Again: I am not talking about the average person facing foreclosure today.

But these are the people who are deliberately not paying their mortgages when they are able to pay.

In Psalm 37:21 it says: "The wicked borrows and does not repay, but the righteous is gracious and giving." (Holman Christian Standard Bible). I looked at a whole bunch of translations and I couldn't find a one that was any less clear on this subject.

Borrowing and not repaying when you have the ability to repay is wickedness. There is no out for making a "bad investment". This kind of behavior is not worthy of praise, it is only worthy of condemnation.

And I don't think I would trust someone who I knew pulled this sort of stunt. In anything...