[quote=UCGal]It is one thing to make a cold, calculated gamble that the credit hit is worth the credit hit and underwater-ness.

It is another thing to intentionally trash a house.

At that point – it’s not “their” house anymore – it’s the banks. They’ve stopped paying. Yet they are going to “trash” it. That is vandalism.

I’m with TG on this. What they are doing may be legal. But it isn’t ethical.[/quote]

Depends on what they mean by “trash the kitchen” as to whether it’s legal or not as well.

Leaving a mess – legal
Selling the fridge/microwave – legal
Removing countertops, cabinets, sink, oven, and other built-ins – NOT legal.

Built-in’s are considered to be part of the value of the house, and thus part of the collateral that the bank has an interest in.

Of course, banks have enough to deal with right now, and I suspect petty vandalism on the part of previous owners ranks pretty low on what they will go after people for, but they could do so (and have done so, even recently), and the law is on their side on this one.