Originally Posted by kickstand
You bought it, you signed on the line. Pay for it. Can't afford it? Shouldn't have bought it
I agree with you. We were/are a prime candidate for a strategic default.
Isn't going to happen. I made a promise, and I aim to keep that promise and pay the note off. (in fact, hopefully our refi will go through shortly (no debt forgiveness) but much lower rate and shorter term - intend to have the house paid off in 10 years, or 15 at the worst depending on what they approve)
That being said, if the note is only held by the collateral of the house, and some questionable strong-arm attempt at collections, temporarily ruined credit scores, etc. then on a macro level it makes sense to have the bank participate in the short sale and get someone else into that house at today's market values rather than seeing someone abandon the house and impact a neighborhood or region with blight.