Facing Foreclosure? The Ethics of the Forensic Audit Suggestion.

[NovemberLove]

This morning on Fox news, they broadcast a segment with a financial expert giving advice to people on how to best deal with the increasing difficulty with paying mortgage payments.  Some of his advice was very good.  He informed the viewers that those with a FHA loan could contact HUD to receive a loan to pay off how ever much they are in the rears with their mortgage.  The HUD loan would not be due until the FHA loan was paid back OR the home was sold.  I didn't know that.

One suggestion that rubbed me the wrong way was his advice for those facing foreclosure to hire a professional to do a Forensic Auditon their mortgage to look for any errors the bank might have made.  The purpose is use those errors to accuse your bank of "fraud" with hopes of trying to coerce your bank (pretty much blackmail them without him using those specific terms) into reducing your loan, forgiving your delinquency or writing your mortgage off all together.

What do you think about that?  If you take a loan from someone do you believe you should pay it back or do you think it is OK to try to get out of owing the money?  I think that if an error is made in a mortgage, then it should be fixed.  I don't think someones mistakes (mortgage preparers are human too) should be used as an excuse for me to have a free home and not pay what I owe.  Now actual fraud is a whole 'nother animal.  However, this suggestion sounded like he wanted you to search for every "t" to be crossed and every "i" to be dotted and if it wasn't you should try to use it to not pay the money that you owe.  I personally am very Deontological in my ethical process of coming up with what I feel is "right" and what I feel is "wrong" for myself and my family.  I believe in treating others how I want to be treated.  I also believe in looking at the global impact of things: "if everyone else did what I did, would the world be a better or worse place?"  So, if everyone decides to try to get out of the loans that the owe based on a mistake made in the paperwork of their mortgage...what impact do you think that would have on banks, account holders like you and me and people like you and me trying to get loans and credit?  Is it really wise for an "expert" to be advising people to try and find a way out of paying back money that they borrowed?

I can't muster any sympathy for those who got stars in their eyes and financed their McMansions when they knew they couldn't afford the payments.  I do feel badly for those who financed responsibly and can't pay their mortgages due to the economy or lay-offs.  Either way and no matter which side of the fence you are on, would you try an unethical measure to get out of your loan if it meant you could keep your home and be mortgage-debt-free?

(photo by Novemberlove)

Signed,

Amanda

Thanks for reading:  My name is Amanda.  I'm a 23 year old SAHM recently leaving my job in Social Work to take care of my son.  I love writing and photography and plan on incorporating both into my journal posts.  I'd love it if you came back to read more.  Feel free to befriend me