Tuesday, July 31, 2007

Spiritual Mortgage Foreclosures


Stay with me, I promise a spiritual application to these disturbing statiscs. According to figures released this week by the mortgage industry, the U.S. is having a record year in the number of home foreclosures. In the first six months of 2007, we are 58% ahead of where we were for the same period last year! Over 570,000 properties have reported some type of foreclosure activity so far this year according to RealtyTrac, Inc. CEO James Saccacio to the Associated Press: "We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65%."

According to the report, California, Florida, Texas and Ohio led the nation with the highest number of homes in foreclosure. The AP story by Alex Veiga reported: "Last week, Calabasas-based Countrywide Financial Corp., one of the biggest mortgage lenders in the U.S., said even some of the most creditworthy borrowers were having trouble making their payments."

Is anyone else concerned about this trend? It would be interesting to note the number of business foreclosures and the comparison of corporate and personal bankruptcy filings nationwide too. Are the foreclosures related to job losses, or are many of us simply living beyond our income by purchasing homes based more on the ability to afford the payment while ignoring the inevitable increases in living expenses for healthcare, utilities, food and maintenance? My guess is that the majority of foreclosures are due to people living above their means than it is to significant job losses. We are writing checks that we can't cash.

Churches be warned and be careful! Especially those undertaking any type of serious capital campaign for anything from missions to building projects. It doesn't seem there is an end in sight to this unfortunate trend of Americans trying to satisfy an appetite we cannot afford.

I'm thinking spiritual foreclosures are probably up nationally as well. Spirtual foreclosures? Yep, I'm talking about people who take on more, promise more (many even well-intended) and accept an increase in ministry, service or leadership only to default on their commitment or intention, because "something else came up". Even more troubling is the alarming amount of those who make such commitments and have absolutely ZERO intention of ever making good on them, or those who are quick to offer criticism, or suggestions but refuse to be part of the solution. Yet, they are usually among the first to seek assistance from God's Grace Bank at the first sign of trouble. Then there's the group who promise and express a desire to grow in Christ through spiritual formation, but they aren't willing to make the necessary investment in time and effort. They would rather have a spiritual mentor, or leader wave a magic wand of spiritual growth over them and "make it all better".

Aren't you glad the Grace Bank is run by God and not me, or someone like you? He's the principal loan officer, president and CEO. What would happen if God started foreclosing on all the things we fail to make spiritual payments upon? The sound of the collapse would be deafening. It's time we quit focusing on the total spiritual mortgage amount we owe and letting its sheer size lead to self-resignation resulting in spiritual defaults. This is a debt that can never be fully repaid and that's the wrong approach, like looking through the wrong end of binoculars. Simply start making payments, or investments in the things of God. Unlike big mortgage companies, God respects single, small, honest steps with authentic motives. Just start giving a little at a time. Before you know you'll be making huge grace mortgage payments, investing in His kingdom and enjoying every moment of it, I promise!

1 comment:

Anonymous said...

Dear Monty, thank you for sending me the link to this blog. I liked how you tied in the spiritual forecloser rate with the mortgage one. As a mortgage broker, I see the foreclosure problem as two fold. Lust and greed are prevelent in this current foreclosure problem. Greed on the part of banks and loan officers and lust on the part of consumers who want more home than they can afford along with wanting more of everything than they can afford. The lust of the eyes and pride of life. Nothing new under the sun. Greed and unresponsible lending has fueled consumer lust. Its all about the benjamens! "the more people i can get into the home of their dreams at a payment they can "afford" the more $$ i can make. Interest only, negative amoritization, 100% financing, adjustable rates, prepay penalties etc. are the vehicles consumers are riding to foreclosure. Not to mention the subprime branch of this locamotive. If consumers with prime or Alt-A loans are having problems the subprime market is that much more vulnerable. Higher rates and big rate adjustments on ARM products along with severe prepay penalties will easily bring a consumer to their knees. As a mortgage broker, the last thing I want to do is play a part in getting a consumer in a loan they will have a hard time paying. I seldom do an interest only ARM for my clients. Neg Am loans for the most part are out of the question. I have not done one in several years. The problem can be reduced considerably going forward if the banking and mortgage community will commit to a higher level of responsible lending. I am doing my part, one loan at a time. Also, There are way too many mortgage shops out there that encourage blantant fraud, deception, and high fees to an untrained consumer base made up of primarily blue collar working class people many of whom are minorites. In a recent study, Charleston and Greenville Counties ranked the highest in our state for high cost - high rate loans to minorites. Whoa to those involved in this practice. Blessings, jon