What happened was that the mortgage industry (really it is the secondary market that buys the mortgage backed securities) decided to forget about asking or proving that the borrower had the ability and the willingness to repay the obligation.

That caused a huge imbalance of buyers to sellers. That is why home prices rocketed straight up. Supply and demand.

These loans should have been illegal. You should not be able to lend to consumers unless you prove there is a reasonable expectation of repayment.

So they were making mortgages available to just about anybody.

Fast forward and all the sudden they say oops. All of these banks would have been bankrupt if they did not receive assistance. But hey they made a bunch of money and gee to bad about the rest of us that did not get assistance as they did.

We are all talking about our moral issues, yet the truth be known we got ran over by an unforeseen and due to no fault of our own train. I call it the greed train because belive me they made a ton of money on all those real estate transactions and then as callus as can be sold that toxic mortgage junk all over the world and brought down the very institutions they worked for as well. Washington Mutual was a huge mortgage originator and held a bunch of the mortgages themselves, they imploded as well. Tulip Mania.

So what is the lesson? Caveat Emptor

What the solution to all these people in crisis. I think The Body of Christ should join and help each other.

There will always be poor people in the land. Therefore I command you to be openhanded toward your brothers and toward the poor and needy in your land

Consider the form of the suzerain-vassal covenant that Yahweh made with Israel at Sinai (mediated by Moses). Basically, the L-rd said ‘if you follow my law, then I will bless you and let you possess the land I promised your fathers and protect you from your enemies; but, if you do things that I hate and are an abomination to me then I will dispossess you from the land, remove my protection from you, and scatter you among the nations.” Of course, redemptive history in scripture is the story of Israel failing to live up to its terms in the covenant they made with G-d and, as promised, the L-rd did as He said he would: ejecting Israel from the land.

The mortgage covenant has a similar form. If the borrower pays according to the terms of the note, then they will own the property free and clear and the end of the term. However, if the borrower defaults, then the lender has remedies: namely, the lender has the right to call the entire balance of the loan, plus interest and fees, due in an accelerated manner or at a time of their choosing (with appropriate notification to the borrower and allowance of a reasonable time for remedy). Ultimately, the lender may dispossess the borrower and take the property as the ultimate remedy.

This being the case, it appears to me that the terms of the mortgage itself allows the borrower to ‘make full restitution’ in Ex 22:14 by virtue of the fact that the lender takes the property (assuming the property is kept well-maintained and is in the similar shape as when it was purchased).

In response to Psa 37:21, I would argue that a borrower who has to move his family and forfeit his home is not a borrower who “payeth not again”. That, including the other penalties (ruined credit, social stigma, etc.) is a high price to pay indeed.

Finally, I think this verse from Psa 37 is also relevant here:

“The wicked have drawn out the sword, and have bent their bow, to cast down the poor and needy, and to slay such as be of upright conversation.”

I think to moralize and condemn those who are in a situation where they are no longer able to service their mortgage debt is outright legalism as bad as the venom that the Pharisee spewed.

Every situation is different, but I believe what God’s word tell us to do is the same. Pay back what you OWE no matter what.

I have been laid off from a bank I worked for over 10 years. I am the breadwinner of the family and my income makes up about 75% of our total income. It’s a tough time. My condo in CA is worth 200k less than I paid for it and I have an adjustable loan. My situation is not the worst one, but is not a good one. However, I feel I still have to pay back my debts. Not because I am better than anyone else or more righteous, but because I believe God expects me to do it. It’s really that simple.

My situation is not the banks fault. I bought a home that I wanted and they agreed to loan me the money. That has nothing to do with bonuses, lavish parties, or how much money the bank made. They didn’t force me to take a loan with them. I asked them to loan me the money and they did.

If I would have built my house on solid ground (less stuff) and not sand (treasures in this world), then I wouldn’t be in the mess I am in. I need to face the consequences now. If I can’t get a loan modification, perhaps my husband and I will need to get two jobs each to pay our mortgage and other bills. Yes, we do have a child that will need to sacrifice as well. Perhaps we will have to move out of our home and rent it out, make up the mortgage difference while renting something less than we want. Perhaps we will need to give up cell phones, cable, and whatever else we can to lower our bills. Whatever sacrifice we will have to make we will so that we pay back our debt. This again it what I feel God expects us to do so we will do it. Obedience is not always fair or fun, but it is necessary.

Please know that I am not making light of anyone’s situation and am not judging anyone for what they choose to do. It is really a sad and very difficult situation for alot of people. We must all make our own choices. God doesn’t just know the truth; He is the truth. His word tells us what we should do. Whether we choose to do it is our choice.

What about praying for each other and helping each other where we can? If you know of someone that is losing their home or lost their job and you are capable of helping them, then please do so. Don’t wait to be asked. Ask how you can help! Those of us that need help, ask for it. Who knows perhaps there is someone that could help (your church, good neighbors, friends, family). If anyone posting here knows of programs or other ways to get help, let’s post that and stop debating whether to walk away or not.

Even though I don’t agree with walking away, I also think that those that do make that choice don’t make it lightly. They most likely feel desperate and don’t know what else to do. It is certainly not an easy decision.

Whatever we choose to do, we can trust that God will NOT walk away from us. Although He wants us to do the right thing and there will be consequences for our decisions, God will stand by us NO MATTER what we choose. He will always love us and forgive us. How AWESOME is that?! I can’t screw up bad enough to stop God’s love for me. So Let’s love each other and forgive as well. That’s truly what God wants us to do.