Yes. And if the market does bounce back then it will turn out to be a good investment. Especially in those cases where folks are working and have the money to make their payments, just as they did before.

There is always the possibility that enough people start walking for one reason or another and a tipping point is reached. Then standards of behavior and credit ratings might change so that creditors have no choice but to negotiate their own ‘haircut’.

Chances of that are slim but not zero, IMO.

* Market to bounce back in a few years

* Walk away will toast credit rating

Therefore, they make an irrational decision to pay.