Archives for October 2010

Do you have an Ethical and Moral Obligation to pay your mortgage?

Short Sale Utah

Short Sale Utah

This a question that has come under some scrutiny over the last few years. The answer in my opinion is quite simple. Yes, a mortgagee does have a responsibility (ethical and moral) to repay a mortgage agreement, HOWEVER, this obligation does not come at ANY cost. First and foremost an individual has an unprecedented obligation (ethically and morally) to do what is in his/her individual or families best interest.

If at any time an individuals or families needs are called into question because of an outstanding debt obligation, it is in my opinion the head of the families obligation to do whatever is necessary to settle and defeat that debt. This is called negotiating. It is what reasonable and responsible people do when they are faced with something that is not manageable.

When viewing this in terms of a mortgage this should be viewed in both short and long term perspectives. Suppose someone is 200K upside own on their mortgage and just getting by. The equity in their home IS REQUIRED for retirement and will not recover for 10-20 years. If they choose to get out of the debt and into a new home they will be in an equitable position in just 2 years. What is in the individual/families best interest?

When the mortgage trust agreement was put together, all parties understood and agreed to the perceived risk, including the lender. And the lender was out to make a profit. Almost all banks have “short sold” their debt to the federal government or other private investors. So when you “short sale” your house the price you payoff your mortgage may actually be MORE than what your current investor PAID FOR YOUR LOAN! If you have a home that is in foreclosure in Highland Utah, Alpine Utah, Draper, Utah or Cedar Hills Utah, or any where in Utah county or South Salt lake county, call me for a free consultation about your options to stop foreclosure, short sale your home and settle your mortgage.