The New American Dream: Default On Your Mortgage, Then Rent

It sounds as if we are finally moving beyond the hysteria that initially accompanied the mortgage meltdown. People are finally acknowledging that defaulting on your mortgage may be the sensible thing to do.

From today’s WSJ:

People’s increasing willingness to abandon their own piece of America illustrates a paradoxical change wrought by the housing bust: Even as it tarnishes the near-sacred image of home ownership, it might be clearing the way for an economic recovery.

Thanks to a rare confluence of factors — mortgages that far exceed home values and bargain-basement rents — a growing number of families are concluding that the new American dream home is a rental.

Some are leaving behind their homes and mortgages right away, while others are simply halting payments until the bank kicks them out. That’s freeing up cash to use in other ways.

(Via Patrick.Net)

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