BluegrassForeclosure.com

Here’s an interesting post from the Public News Service out of Frankfort:  Some mortgage lenders have stopped foreclosures in states like Kentucky, under mounting concerns about banks’ mishandling of foreclosure documents. Now, a multi-state investigation is being launched to uncover the truth.

Don McNay, a financial advisor and “Huffington Post” columnist, says allegations that some mortgage providers used questionable paperwork and practices to evict delinquent borrowers may give struggling homeowners an excuse to stop payments.

“Foreclosure is a legal process, and you have to follow all the legal steps. But there are people who can rationalize and justify in their minds, ‘I shouldn’t have to pay this because they didn’t treat me properly, and they didn’t follow the law.’”

. . . .

A recent study by the Pew Research Center found that an increasing number of Americans – 36 percent – believe it makes sense to walk away from a from a house note, under certain circumstances.

McNay contends the current system makes it smart for cash-strapped homeowners to do the wrong thing.

“The morally correct thing is to pay your bills. But the economically correct thing is to stick it to your lenders any way you can. If you pay your mortgage, even if you’re suffering unemployment or economic hardship, you’re going to be worse off long-term than your neighbor who doesn’t pay the mortgage.”