Is it wrong to stop paying your mortgage just because your home is worth less than the mortgage balance? My answer is not just, “No,” it is “Hell no!” It is time to stop blaming the victims of the real estate market meltdown and start moving toward solutions.
Having the 99% majority squabbling amongst themselves about how to respond to having your entire life savings ripped away suits the 1% perfectly. That conveniently deflects attention from the warped financial system that got us into this economic quagmire in the first place.
Housing prices have declined on average over 50% in California
At what point is it moral to not pay? When your savings are depleted? When your retirement is gone? When the stress has ruined your marriage and your health? What are your true priorities, the bank or your family? The bank has no morality. It is a mindless, money eating machine.
Paying the mortgage on bloated mortgage debt makes no sense. The bubble has burst. There is no way to put Humpty Dumpty back together again. We are in a new reality where there is no shame in refusing financial servitude. Don’t fall for their horse manure. Don’t cling to the debt! Take advantage of your rights and protection under the law. Some banks are actually paying you to do short sales. Go ahead. Push the reset button. Declare a do-over. You will be able to rent right now for much less than your current payment and buy again in 2-3 years for way less than you owe now.
