[kms61]

in a survival situation you do what you have to do. Morality doesn’t enter into it on wall street, if I’m in a bind I’m not going to lose sleep over screwing them over.

[Betty Jane]

Let's leave the morality of the scheme aside, and look at the practicality for some. Let's assume they bought a home within their means at the top of the market in 2005 or 2006, with little or no money down. Their payment is manageable but a struggle, due to the downturn and rising prices. The value of the house is down 20-30%.

So here are the options, the right thing: do everything to make the payment; cut out all extras, try to pick up a part time job, etc.

The other option: Do what he says and stop paying the mortgage and stashing the cash. Stay in the house as long as possible. Then rent something cheaper, which will be everything in another year or two.

The economy starts picking up. Now they have the unpaid mortgage payments and the difference between rent and the mortgage socked away. House values are at the bottom. Now they have 10-20% socked away to put down on their old house or a different one at a lower price than when they originally bought.

Is this his scenario? With a larger down payment, would the credit rating matter on the next home purchase?