This is not to sound like an attack on serious people in default, but I came across an article from the Wall Street Journal that stated the willingness of borrowers to "walk away" from mortgage debt has contributed to extraordinary high levels of early default reported by analysts at Fitch Ratings*.

Their reports to investors have indicated that such behavior is not willful fraud, but clearly shows that American homebuyers are not the victims of their lenders as previously perceived.  In fact, they are perfect capable of making rational decisions without political intervention.

What appears even worse with this report, is that borrowers who are, in theory, able to afford their homes, are opting to ditch once they become cognizant that what they owed is more than what comparable houses in the surrounding areas where selling for and would be unable to make their return on investment anytime in the near future.

Is this the new bankcruptcy trend?

The upside, is that those willing to take such bold moves will suffer a hit on their credit.  Until people are willing to change their behavior, the market will not change. 

*RealEsateJournal.com,Commentary:The Rise Of the Mortgage Walkers, Nicole Gelinas, February, 11, 2008.