The Economic Collapse

In 2010, record numbers of Americans are defaulting on their mortgages.  For most of them, it is because they simply cannot afford the mortgage payments any longer.  But for a growing number of Americans, the decision to stop paying on a mortgage is not because of financial hardship.  Rather, after taking a hard look at the numbers, many Americans are simply deciding to walk away rather than continuing to make monthly payments on a home that has dramatically declined in value.  It is called a "strategic default", and it is a phenomenon that is sweeping the nation.  So why have strategic defaults increased so dramatically?  Well, in some areas of the United States, homes are only worth about half of what they were going for at the height of the market.  So what is the morally right thing to do in that situation?  Should someone "honor the contract" that they signed and continue making payments no matter how hard it hurts, or is the morally right thing to stop making payments on the mortgage in order to put your family in a better financial position? (Read More....)