You are assuming that because I don’t have a significant chunk of my own money tied up in the house that I am simply willing to walk away if the market turns and let the bank eat the loss.
Nothing could be further from the truth.
I didn’t buy my house as an investment that I could turn over for a quick profit. I bought it as a place to live and a tax shelter. And, in spite of the fact that I could have pulled out a significant amount of equity in it in the last 4 years via a HELOC in order to do some remodeling and landscaping, I preferred not to take on an additional payment and have been socking away cash for that purpose.
There are plenty of people like me who understood the financial obligation that we entered into when we bought our homes and would never walk away from those obligations.
The only money I owe is on my house and my car. I pay cash for everything else.
