The numbers are changing, during a boom, very few nod’s end up being foreclosed on because the person not making the payment can just sell or refi. In a flat period or slow appreciation it’s probably 1 in 4 end up not’s or shorts. Alas, we are living in interesting times. What percentage of people upside down will pay cash to keep their credit? 1%? 2%? That’s probably the extent of it. Your only options if you can’t make the payment and are upside down is to let it go NOT or short sell, since the refi option has been taken away, anyone who loses their job or gets plowed over by a resetting arm is 90% likely to go NOT or short, IMO. A scenario rarely seen in history. I think we are at a tipping point with employment starting to take a hit, every layoff is now going to convert into a must sell scenario, finding a credit and sales market unable to absorb it.