This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Is It Morally Right to Foreclose Your Home?

Is a strategic foreclosure stealing? Is a strategic foreclosure lying?

Are you or a family member struggling with the need to foreclose on a home? With 2012 now here, most of us will set some goals in place to make this upcoming year a productive and happy year. Yet, many of our fellow citizens are dealing with the loss of their homes.  Yes, Georgia is one of the top 10 states with homes being foreclosed.

According to RealtyTrac, a California-based firm that tracks foreclosures, Georgia had one of the highest rates of foreclosure in November. Nationally, 1 in every 579 housing units received a foreclosure filing in November 2011. In Georgia, 1 in every 330 homes is being foreclosed. The average price on a foreclosed home is a mere $110,000.   (Top 10 States For Foreclosure: November 2011 | Bankrate.com http://www.bankrate.com/finance/mortgages/top-10-states-for-foreclosure-1111-1.aspx#ixzz1iRC8WnsH

This is a title that most Georgians would have rather not earned. Why has Georgia earned this title of dishonor? First, we know that without a job, you cannot pay your bills. Without paying your bills, you will have your car, house, boat or other services taken away. If you do not pay your house payment you are considered in default. In the state of Georgia, you are in default the first day you miss a payment.  

Find out what's happening in Daculawith free, real-time updates from Patch.

So if you are now looking at your home being foreclosed on, let’s look at two types of foreclosures. First, is the old traditional foreclosure of a home. In years past if you could not pay your house note, the mortgage holder/bank sent a letter saying, “PAY UP OR GET OUT!”  The bank wants you to pay up and become current on your payment. The bank did not want your house, they wanted you to become current on your loan. Many times in the past a person would have lost their job, have their income reduced and then not be able to pay for a roof over their head and be put out quickly. In past years, it was a sign of shame to loose your home to foreclosure. It was a announcement that you were not very good at handling your finances. 

Most of us who own a home have come to realize that our home is not worth the value it once held. Let’s say I pay home  taxes on a county assessed amount of nearly $300,000. Fast forward to now, the county has assessed my home at $170,000! Yes, that is right, I went to bed one night and woke up some $100,000 poorer in the real estate market! Yet, I am one of the lucky ones.  I do not owe $170,000 on my home, I only owe $123,000 at this time so the downgrading does not hit me as hard in some ways.   

Find out what's happening in Daculawith free, real-time updates from Patch.

For many whom bought a home in the past five years and did not put down a hefty down payment, they are now “UNDERWATER.”  Underwater means that I owe more on my mortgage than the house is currently worth. In other words, my house is now worth $170,000 yet, I still owe $288,900 to the mortgage company. With families facing this reality, many home owners decide to do a "STRATEGIC FORECLOSURE.”  A strategic foreclosure is when a family decides that they will never see the value of their home equal the remaining payment owed to the mortgage company so they make the strategic decision to walk away from their home and payment. 

A strategic foreclosure is still a foreclosure and will still damage your credit. Many homeowners of today feel that they will never be able to gain back their property losses. The home that once held equity now is underwater. Many are looking forward and seeing a dark cloud that will never blow through. Many just hand over the keys to the mortgage company and got rent a new home. Some just move without even notifying their bank.  If they have other assets, i.e. cash, many simply just do a “SF” and go buy another home. Many buy in the same neighborhood, possibly a fellow neighbor’s foreclosed home at a great price! Fair? Honest? Smart?  A “SF” is a decision that many are now making. As the market continues to falter, with no relief in sight or at least not in enough time, homeowner’s are making moral decisions. 

It is a moral decision that each person must make within their own moral mind. Is it honest? The economy has changed forever. The way we do business has changed forever. The lack of leadership in Washington has caused many to have to reevaluate the future use of their limited resources. 

In my moral mind, I must think, have I broken one of the 10 commandments. Is this stealing? Is a strategic foreclosure stealing? Is a strategic foreclosure lying? I am giving the house back so what has been stolen? I am not stealing a house. Basically, I was only renting the home from the bank is what many feel nowadays.  

The bank got their payments up to now and they may also recoup their lender’s insurance for the defaulted loan. So I ask you, “Am I telling the bank the truth?”  Many just stop paying their payments and just walk away without notifying the bank. Many others are staying in their homes and are not paying their payments.  With many banks being sold to other banks, it is taking years before a family is being put out on the streets. On average, most Georgians can remain in their homes for over two years before the sheriff would put them out. Many are obtaining attorneys and fighting paperwork in an effort to continue to have a roof over their families head.  

Will we ever see the purchase of a home be the American Dream again?  Will our homes ever be a good value again? Will our homes continue to loose their value?  Will our taxes continue to rise as our jobs continue to disappear?  Will we have the courage to change our future?  Will you speak up for those in need?  Will you vote your morals or your money?  The first Tuesday in November will be the most important day for many families this year.  Educate Yourself and Vote.  No Consequence - No Change.  

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?