Maybe it's a generational thing, or maybe it's just a symptom of this economy, but I do feel it is inherently dishonorable to default on a loan. It's just something that was ingrained in me, but I understand your point. I just think I'd do absolutely everything to keep paying my mortgage even if I had to default on a car loan or much less forego restaurant visits and trips. I've always thought that your mortgage is the #1 most important thing to pay - home and hearth and all that
My grandfather would roll over in his grave if he knew I had walked away from a debt or a signed contract. I still feel guilty at 46 when I do things I think he'd disapprove of, but that's my issue
It is definitely a decision that is made higher up (my son is at the absolute BOTTOM of the totem pole), and they may just be filling him a line of bull about regulations, but he does say that the bank does not want to foreclose and will go to great lengths to keep people from defaulting. It's much cheaper for them to take some $ off the balance or lower the interest rate than it would be to sell at foreclosed rate or even short sales.
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