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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.