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...
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Thursday, February 17, 2011
Monday, January 3, 2011
Numbers
It is common at the end of a year to reflect back on what has happened over the course of the year. I came up with a bunch of numbers.
One is 1000. I reffed my 1000th career soccer match last year. I also reffed 127 matches. Lot of time spent on the pitch.
I also ran 544.14 miles last year. It took 80 hours 52 minutes and 16 seconds of running time. This is in addition to the time spent in soccer matches.
Then there is 3.375. We refinanced the house and got that interest rate late in the year. That number truly boggles my mind.
And there is 87, the number of Insanity workouts that I did early in the year.
Four came up as the number of times I donated blood. One was the time rejected for being too healthy.
Oh, and three wrestling meets with a total of 120 matches reffed.
47 Bible studies were led on Tuesday mornings at Denny's for CBMC. Missed five for various reasons.
My Dad turned 80 this year, a true milestone. Fun to celebrate at Mahoney State Park in Nebraska.
Speaking of Nebraska, the number one comes to mind, since both kids survived a one car rollover on the way to Mahoney on Father's Day. The One True God was certainly in evidence that day.
These are the numbers that came easily to mind (or to hand from the computer). Truly mind boggling.
Looking forward to 2011...
One is 1000. I reffed my 1000th career soccer match last year. I also reffed 127 matches. Lot of time spent on the pitch.
I also ran 544.14 miles last year. It took 80 hours 52 minutes and 16 seconds of running time. This is in addition to the time spent in soccer matches.
Then there is 3.375. We refinanced the house and got that interest rate late in the year. That number truly boggles my mind.
And there is 87, the number of Insanity workouts that I did early in the year.
Four came up as the number of times I donated blood. One was the time rejected for being too healthy.
Oh, and three wrestling meets with a total of 120 matches reffed.
47 Bible studies were led on Tuesday mornings at Denny's for CBMC. Missed five for various reasons.
My Dad turned 80 this year, a true milestone. Fun to celebrate at Mahoney State Park in Nebraska.
Speaking of Nebraska, the number one comes to mind, since both kids survived a one car rollover on the way to Mahoney on Father's Day. The One True God was certainly in evidence that day.
These are the numbers that came easily to mind (or to hand from the computer). Truly mind boggling.
Looking forward to 2011...
Sunday, March 8, 2009
Debt
I went to church last night.
They gave out numbers on how they were doing with the budget which is not good.
First some background and a disclaimer: I have talked about everything that I am going to mention with the Pastor and leadership of my church. That is the disclaimer.
I hate debt. Debt is wrong. It is not evil, just wrong. We still have our mortgage, but we've paid off our consumer debt. We're still trying to figure out whether or not to pay off the mortgage.
Some background. Our church has $5 million in debt on the building. Last Mothers Day, a marketing presentation was made in place of the sermon on the need to build an addition on to the building in order to "support the ministry." This was a shock to most people in the congregation. Nothing had been said prior to Mother's Day.
Later, around July, prayer started around the whole thing.
Part of the plan was to reduce the debt with 20% of the proceeds going to debt reduction. The goal was somewhere around $3 million.
Roughly $1.4 million has been pledged. Far short of the goal. And blamed on the economy. I happen to believe that God will provide regardless of the economy if it is in his will.
Our payments on the debt run around $20,000 a month.
Interesting. For that is about what we short in offering for February.
I know that if we try to do this in our human abilities we will have human results. And so far the
results seem to be about what the rest of society is experiencing.
Is this God trying to tell us that we would be OK if we pay off the debt? Or is it just me trying to see what I want to see in my humanness?
They gave out numbers on how they were doing with the budget which is not good.
First some background and a disclaimer: I have talked about everything that I am going to mention with the Pastor and leadership of my church. That is the disclaimer.
I hate debt. Debt is wrong. It is not evil, just wrong. We still have our mortgage, but we've paid off our consumer debt. We're still trying to figure out whether or not to pay off the mortgage.
Some background. Our church has $5 million in debt on the building. Last Mothers Day, a marketing presentation was made in place of the sermon on the need to build an addition on to the building in order to "support the ministry." This was a shock to most people in the congregation. Nothing had been said prior to Mother's Day.
Later, around July, prayer started around the whole thing.
Part of the plan was to reduce the debt with 20% of the proceeds going to debt reduction. The goal was somewhere around $3 million.
Roughly $1.4 million has been pledged. Far short of the goal. And blamed on the economy. I happen to believe that God will provide regardless of the economy if it is in his will.
Our payments on the debt run around $20,000 a month.
Interesting. For that is about what we short in offering for February.
I know that if we try to do this in our human abilities we will have human results. And so far the
results seem to be about what the rest of society is experiencing.
Is this God trying to tell us that we would be OK if we pay off the debt? Or is it just me trying to see what I want to see in my humanness?
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