As a matter of fact my home has declined 50% through no fault of my own. It sucks. But, as long as I can make that mortgage payment I will. Each payment pays it down a little and eventually I’ll no longer be underwater. You see, I bought my home to live in, not as an investment. When I bought I made an economic decision that is was worth $X, and I took on a mortgage and the obligation to pay that amount to the lender over the next 30 years. That’s what I intend to do as long as I am able.
As to “what if you weren’t able to?” Well, if I lose my job and am unable to find another, then I may not have any choice in the matter. That’s perfectly understandable and is quite common here in Las Vegas. But that doesn’t justify other people walking away if they have the means to keep paying just because their home is underwater.
OK> If you knew your home was worth 200,000 and you had a loan of $500K, would feel the same way? How about $100 and $600K?