Not many serious threads make it to page 3 without getting jacked. Intentional default is OK but it is soooo 2008. You added credit card default to your plan, but unsecured default is a separate issue. If the losses were really going to the banks with intentional default I would be in favor of it. Force the banks to make wise risk decisions when making secured loans. Unfortunately, it will just mean losses to the GSEs who will be bailed out with further government debt (and ultimate “quantitative easing”).

It is not as critical in SoCal as say Florida, but properties need to be lived in or they quickly degrade. Responsible squatters who keep the place clean and even do minor maintenance and yard upkeep provide a valuable service to the banks. Squatting in homes banks refuse to take back harms no one except the unidentifiable rentier who will not getting your rent check. I think it is a net benefit to society and should be encouraged.