Mortgage Default Economics

To default or not to default. That is the question.

Answer: If your house value falls sufficiently below your mortgage loan simple good business indicates that you should, indeed, default. When houses again regain value you would be financially better off defaulting than you would be by simply continuing your payments and waiting for recovery. The figure makes it clear.

It would be greatly to the lender's advantage to renegotiate the mortgage with the borrower. The lender could save himself the cost of foreclosure and resale of the property that way. Any rational lender would do so rather than foreclose. But the packaging of mortgages has decoupled lenders from borrowers thus precluding this remedy.

Sites worth visiting.

A focussed video search engine
http://www.glumbert.com/categories/

This site is beautifuly artful; graceful elegant and breezy.
phatterism.com

http://www.commoncraft.com/ Their "product is explanation" and they do a wonderful job at it. Well worth seeing as artistry of explanation.

Favorite Animations

http://uploads.ungrounded.net/221000/221483_Play.swf
http://www.mapsofwar.com/images/EMPIRE17.swf
http://alanbecker.deviantart.com/art/Animator-vs-Animation-34244097
http://www.gapminder.org/downloads/presentations/
http://www.visualthesaurus.com/
http://www.biomotionlab.ca/Demos/BMLwalker.html
moebius transformations