[Dave L]

I think people in a lot of these situations justify things in thier own mind. "Why should they care if they walk away? are they going to hurt "the bank" the "CEO" with the multimillion dollar pay check?" We all know that it all comes back as higher taxes, higher credit card interest rates but I think in the heat of the moment people can create thier own reality and justify walking away.

I think the days of 25% down and 25 year mortgages will make a return. With skin in the game home owners will be much more carefull and less willing to walk.