Don’t Think You Can Stop Paying Your Mortgage

Fri, Oct 29, 2010

Financial Advice

Hi NeedMoney fans,

I’ve received several inquiries from readers who have been following this mortgage mess as it has unfolded over the past several weeks. So what exactly has happened? It appears that the banks have used improper procedures in many instances when going about foreclosing on homes owned by delinquent borrowers. Consequently, many major lenders have temporarily halted all mortgage foreclosure proceedings across the entire country. The key word here is “temporarily”. Those who were on the cusp of foreclosure obviously have received a much needed reprieve — however, at some point the foreclosure tsunami will commence once again.

Do not think for a second that this presents for a simple way for you to stop paying your mortgage without the fear of foreclosure. At some point, the banks will get their ducks back in a row — and foreclosures will start up once again. Borrowers who think that they can receive a “free house” out of this debacle are sorely mistaken. There are less than reputable blogs out there advising borrowers to stop paying on their mortgages due to the current situation. This is horrible advice. Not only will it hurt your credit — this reckless move can end up costing you your home. More to come later on other facets of the current mortgage crisis.

James

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