That sinking feeling

Underwater loans

I woke up some days ago to a curious, unsolicited email. It urged me to "walk away" from my mortgage. This tactic, the email insisted, would let me stay for free in my house for several months, through the process of foreclosure. Despite the prevalence of such emails, however, fears of 'good' borrowers walking away are, I believe, exaggerated, at least for now. But there is no denying the influence of falling home prices on a borrower's tendency to default.

A borrower who is financially stretched

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