Stop Paying Your Mortgage…

And win big from the government. That’s the realization Paul Michael comes to in this excellent piece on how the stupid are rewarded and the cautious penalized.

But here’s the big question. Should we just stay in the house and stop paying the mortgage completely? An article I recently read by Peter Schiff seems to confirm my thinking. Let’s look at the pros and cons. First, if we stop paying the mortgage we know we won’t be kicked out. There will be a moratorium put on foreclosures, so we could quit paying our largest bill and put that money in the bank, ready to use to buy a new home.

Second, as we have now stopped paying our mortgage we would fall into the category of “struggling homeowner.” Which means, ladies and gents, that the government will swoop in and help us out! Yep, as unfair as it sounds, we’ll get help if we suddenly become irresponsible. My mortgage would be renegotiated, probably at a lower rate, and for the current price of my home. Plus, I’ll have saved thousands on mortgage payments until that happens. It could take six months…that’s around $10,000 we’ll have saved.

The only downside I can see would be a tarnished credit rating. But so what? For the amount of money I’m saving, it seems well worth it. And I’ll still keep my house.

Go on. Fight the Power after speaking Truth to it. Do like Lefty hero Abby Hoffman and “steal this house.”

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One Comment

  1. Jamie:

    Better yet wait till Barry Obama has his genius bankruptcy plan that will allow the government to reset your home loan to half the home’s value! This will have a great effect. Basically Obama swoops in and tells the bank that you no longer owe 200k on that home you bought. You now owe 100k because Obama told them that is all they can have as part of your bankruptcy. Once your neighbors see this they will do it too! Then home values in your neighborhood will plummet as more and more people do this. The banks will be left holding the bag. You think the bank bailouts were bad before. Just wait till every bank collapses as a result of this genius idea from our new president-elect. Chaos coming soon thanks to the Obama economic plan!

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