In the last 18 months or so, it has been common to hear stories about homeowners walking away from their homes when they can no longer afford the mortgage. In some cases, these homeowners consider it prudent personal finances to simply walk away. And now the idea is catching on with some banks.

The idea behind a foreclosure is that, when it becomes evident to the bank that the borrower will likely completely default, the bank takes over ownership of the home and then tries to auction it off in order to recoup some of the losses. A regular foreclosure can mean losing between 50% and 60% on average. However, with the housing market so bleak in some areas, that loss is mounting. Banks are thinking that — in some cases — it’s not worth it to take over ownership. After intitiating the foreclosure process, some banks are just…walking away.

When banks do this, though, it causes more problems for the borrower. It adds fees, paperwork, hassles and confusion. It’s a bit odd that we’ve reached a point where mortgage borrowers and mortgage lenders are competing over who will ultimately walk away.