THE START OF A REVOLUTION: How Shays’ Rebellion Continues Today

Gary P. Opper, Levie-Opper, LLC

Abstract

You might remember from your days in your high school history class the tale of Daniel Shays. He was a poor farmhand from Massachusetts that went on to lead a rebellion against the United States government, whom he and others felt were imposing crushing debt and taxes. Anyone who failed to pay such debts could end up in debtor’s prison and had their property seized.

Shays and his compatriots sought debt relief through lower taxes and receiving funds from the government. They attempted to stop the courts from taking their property by forcing the courts in western Massachusetts to close at gunpoint. Shays’ mission was to stop the government from penalizing individuals without the ability to pay their debts. Many borrowers refused to take responsibility for there action and are tempted to have the courts and government interceded on their poor judgment. When the Revolution broke out, Daniel Shays enlisted in the Continental Army. In 1780, Shays was wounded in battle and chose to resign from the Army, without pay. Upon returning home, he found he had been summoned to court due to nonpayment of his debts.

Currently, borrowers are facing a similar frightening phenomenon. It was on September 20, 1786 that Daniel Shays took revolutionary action. Fed up with the government’s behavior, Shays led seven hundred armed farmers (most of them veterans of the American Revolutionary War) to Springfield.

When a borrower receives word that their home is in jeopardy of being foreclosed on, often times they will make an agreement with their current lender. In many cases, the borrower just can’t pay and will eventually lose the property. To the borrower’s benefit, during the time the legal fight is occurring, they are allowed to continue to stay in their home without paying their mortgage. Several years pass with similar conventions taking place where petitions are sent to the Massachusetts General Court asking for debt and tax relief. Borrowers need to take responsibility and not follow in Shays example.

The uprising of Daniel Shays and his men had a great impact on the United States. A system needs to be implemented to stop the logjam of foreclosures with the court systems. The system needs to be streamlined to determine which borrowers can salvage a loan modification and which borrowers cannot afford their home and should vacate their home promptly so the real estate market can absorb the home.