You’re right. That is exactly how my father and grandfather explained it to us kids 35 years ago. Save 10%, Tithe 10%, House 25%, put 20% down on the loan.
That is a good formula, IMO.
Its not that people aren’t hurting, and that some have to walk away from the mortgage. I understand that.
The point of the article, though, is that this is some kind of good strategy to homeowners who find themselves underwater.
Absurd. Its like saying if I finance a car, and then the car gets dented up and declines in value, I’ll just “walk away” and screw the greedy banks.
Pure rationalization of welching on your debts, intentionally, IMO. And screw someone else, like the bondholders (who might be someone elses pension fund investment or similar important asset).