Well some people are doing the right thing. I have a buddy who is hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse, and he now has two kids. But he refuses to “strategically walk away” like these people in the article. I have another friend who had to put $45K on her credit cards to get out of an upside down flip in Florida. She’s making her payments despite great inconvenience, because she feels is the only moral thing to do.

So not everyone is a deadbeat these days, but the percentage who are, is clearly growing and effecting the overall market somewhat.