Steve, Marsha, and Doug were asked to speak at "Handel on the Law:  Law Day 2010" about troubled mortgages and the free solutions to avoid foreclosure.  KFI AM 640 sponsored the event - the radio station which broadcasts Bill Handel in his show "Handel on the Law" which helps everyday people with answers to their legal dilemmas.

A recent study shows that 81% of people think it is morally wrong to strategically default on a mortgage when the homeowner can pay the mortgage.  Moral belief, rather than economic consideration, stopped most people from strategically defaulting on their property.

Before people determine the morality of strategic defaults they should educate themselves on the mortgage system and the important role strategic defaults play in it.

Is it wrong to walk away from your troubled mortgage?

This discussion paper, written by Brent T. White of the University of Arizona James E. Rogers College of Law, offers surprising insights into the emotional, rational, moral, economic, and cultural influences of walking away from your mortgage payment.  What you learn may surprise you.

A wave of unemployment began to wash over America in late 2007, which swept away financial stability for many families - causing them to fall behind on their loan payments.  It drove home values deep "underwater" as the resulting foreclosures mounted. This wave has stretched relentlessly from the coasts deep into America's heartland. At the same time families were losing their jobs, interest rates on Adjustable Rate Mortgages (ARMs) began to adjust sharply upwards. This unforgiving combination of events led to a housing market crash that washed away people’s ability to refinance or maintain steady employment so they could keep their home.

Watch this video to see the devasting affects of this wave of unemployment.

John and Susan were ecstatic about the news. After a year of stress and harassing phone calls related to their delinquent home loan debt, they thought their worries were finally over.

John had lost his job the year before and the couple couldn’t make ends meet on Susan’s salary alone. This caused John and Susan to fall behind on their home loan payments and they received a notice of default from their lender. John and Susan had stretched to buy their dream home three years ago when it seemed like values would never go anywhere but up and lenders were willing to loan them whatever it took to make the purchase work. Now, with their loan payments adjusting upward, and their home value plunging downward to the point where their home was worth far less than what they owed, their dream home had turned into a nightmare.