One of the interesting mortgage loan trends beginning to appear is the idea that foreclosure could be a smart financial choice. Inman News reports on this new mortgage trend:

Not long ago, foreclosure was viewed as a
shameful outcome of severe financial difficulties, but today, some
homeowners seem almost proud of their decision to ditch their home and
their mortgage payments. Consider Stephanie Valdez, a homeowner in
Stockton, Calif., who told a "60 Minutes"
correspondent that she and her husband saw no point in making the
payments on their house because it was no longer worth as much as they
had paid to buy it.

This is a good point. And with tax relief for mortgage debt forgiveness out there, there are fewer consequences than ever for a foreclosure. If homeowners are willing to wait for the foreclosure to drop off the credit report, it isn’t that big a deal, so the reasoning goes. If the investment doesn’t pay off, goes the conventional wisdom, it’s time to cut your losses. It’s interesting that the home is being seen that way now as well.