I have NO experience in the lending industry, but as everyone that has read my post know, I have opinions on what will happen. LOL

I saw, sometime during the last 6 months, a news report on a Boston news station that featured someone who knew he was going to default on his mortgage. Knowing his future credit was going to tank, he used his still viable credit to get a bank to give him a mortgage on a less expensive home. He convinced the bank that he was simply downsizing and his current home, when sold, would help him pay down the new mortgage.

The man, soon after purchasing the newer, lower mortgage home, defaulted on the first home. Simply walking away from a mortgage he no longer could pay. All this was intentional! When asked buy the reporter, if he thought this was a right thing to do, he stated something like "Why not? I've got to take care of me and my family first."

So, do I think that people will continue to walk away from their homes? You bet!

Human nature, such as it is, shows peoples true colors in times of trouble. Dishonest people will be dishonest. Honest people will struggle, but not walk away from their problems.

As I've said in another thread: Our government, though well intended, opened a can of worms with the Community Reinvestment Act. Instead of helping people with less than good credit obtain loans, as I'm sure was the only intent of the program, it opened the doors to everyone who wanted to buy their McMansions, to flip homes for profit and otherwise use the program for their own financial stupidity. Look where we are now, because of government interference in the natural processes of lending practice.