Let No Debt Remain Outstanding

Q: What does the Bible say about defaulting on the mortgage of an investment property because it doesn't make financial sense to continue to pay it?

A: Thank you for your question. The Bible doesn't specifically talk about defaulting on the mortgage of an investment property. However, I must say that I hope you are not asking your question in order to find validation to default on your mortgage. By definition, "a mortgage note is a promissory note associated with a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise." You entered into that mortgage loan of your own free will with the express written consent to pay it back. In good faith, the mortgage company extended you the credit to invest in that property expecting you to fulfill your obligation to them. In James 5:12, he says, "Let your "Yes" be yes, and your "No," no, or you will be condemned." When you entered into your mortgage agreement you effectively told the lender, "Yes, I will repay the debt." Now, you are saying, "No, I will no longer continue to pay the money I owe you." That is an inconsistent message not inline with Christian character.

Now, with that said, we are living in troubling times given the state of the economy. Therefore, circumstances that were in play when you took out your mortgage loan have obviously changed for you. Investment properties are normally purchased for the direct purpose of generating a profit through rental income and/or capital gains. Given the fact you are contemplating defaulting on the mortgage is evidence that you are not receiving any profit from your investment. Regardless of what you decide to do, "there is now no condemnation for those who are in Christ Jesus (Romans 8:1)." Ultimately, your concern should be directed towards the effect defaulting on the mortgage will have on your finances, your credit, your character and your ability to borrow in the future, not so much on how God feels about it. God is not condemning you for your actions, but the lender may not be as kind and compassionate. They may seek to recoup their losses from you in the future in the form of legal action; garnishments, collections and lawsuits. Plus, there will be the effect a foreclosure will have on your credit rating. Deciding to default is something that could effect you the rest of your life. The Lord will be with with you every step of the way, but the ride may be rough. Defaulting does have its consequences.

The Bible says, in Romans 13:8, "Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law." Think about your situation this way, can you love someone, or be loved by them, if there is a debt between you both? No, you cannot even have a relationship with them much less love each other if there is an unsettled debt. That is how it was with man and God prior to the death, burial and resurrection of Jesus Christ. Our sin was the unsettled debt that stood between us and our God. And just like the mortgage you are considering defaulting on, we could not pay God what we owed Him. We were basically in default to God. Just prior to being crucified, Jesus prayed to the Father, "if you are willing, take this cup from me; yet not my will, but yours be done (Luke 22:42)." Jesus did not want to pay our debt for us, but He did so because of His love. And that is why, in Christ, we can share the love we have received from Him with others. In the spirit of 1 Corinthians 13:5, we are able to keep "no record of wrongs," the debt owed to us by those who sin against us, because we know the debt we owed God was removed in Christ.

The mortgage company most likely will not forgive the debt you owe them. Whether you decide to try and pay what you owe them or default on your mortgage, it will have consequences on your livelihood. Exhaust whatever resources are at your disposal with the mortgage company. They may have options like refinancing or modification programs that can ease your financial burden. In either case, I would suggest you ask God to teach you what you need to learn about the financial decisions you are making. Furthermore, ask Him what it is you can learn about what He has given you through your faith in Jesus Christ. The more you learn about what you have in Christ, that meets the desires of your heart, the less the things of this world will mean to you. In closing let me leave you with this from Luke 7:41-43. [Jesus speaking to Simon] "Two men owed money to a certain moneylender. One owed him five hundred denarii, and the other fifty. Neither of them had the money to pay him back, so he canceled the debts of both. Now which of them will love him more?" Simon replied, "I suppose the one who had the bigger debt canceled." "You have judged correctly," Jesus said." I don't know how much money you owe the mortgage company, but remember how Jesus has canceled the "bigger debt" you owed. Grace and Peace.