@llecs wrote:What's true of the parts isn't true of the whole, though. Not everyone who gets a mortgage with less than 10% down will default. Most won't. You seem to be blaming everyone who is about to get or have already received a mortgage with less than 10% down and that's where the objection comes in.
He' still stuck on statistics and those taking the cowardly, irresponsible, thiefly, and easy way out, and trying to use it as a reason that he thinks everyone will do the same. Which goes back to my comment that he must not know many people in his neck of the woods who believe in PAYING WHAT THEY OWE and HONORING THEIR COMMITTMENTS no matter what the rest of the world is doing. Unless something catastophic happened where I could no longer pay for a house I owned and promised to pay for - i.e. no income ever again, there is no way I would just stop paying and walk away from a house regardless of who else is doing it and getting away with it. I don't believe I'm in the minority with that either, as there are plenty of hard-working honest people on this board and all over the place who would also do the same.
I still don't understand why anyone would 'strategically default' on the roof over their head just because the value goes down as long as they can continue to pay for it.
Does the owner of a brand new sports car stop making payments just because it depreciates thousands of dollars and if he "hypothetically" wanted to sell it quickly, he won't get what he paid? No he enjoys it,pays for it, and continues to drive it no matter what the value.. Do you sell your stocks or cash out your retirement accounts (if you don't need the money immediately) just because the value goes down on a normal day? No, you hold on to them and wait for them to go back up, which they eventually will - If only Martha Stewart would have done that 
No one has a crystal ball and home values could go back up one day, but as long a you don't need to sell a house anytime soon, but just want to enjoy living there and paying for it, who cares what its worth???
@Mark_in_Pasadena wrote:
You just don't get it. Most people won't strategically default, but MILLIONS will. It only takes 20% of those underwater on their mortgages deciding it makes more financial sense to strategically default to cause a further deterioration of the housing market. That's right, 80% won't...but 20% will...those 20% should never be put in a position to even ponder strategic default. Requiring a 10% down-payment will prevent strategic defaults.
It's not about you, it's not about the 80% of people who will honor their payments, it's about the 20% that won't and will wreck our economy due to strategic defaults.
"Their neck of the woods" has nothing to do with it, it's happening all over the country, in high-demand areas as well as fly-over country.
So what's next? ONLY secured credit cards?? No personal loans unless you have a home or vehicle as collateral? How about NO new car loans since they lose X amount of value the minute they're taken off the lot?
@Mark_in_Pasadena wrote:
@Anonymous wrote:
@llecs wrote:What's true of the parts isn't true of the whole, though. Not everyone who gets a mortgage with less than 10% down will default. Most won't. You seem to be blaming everyone who is about to get or have already received a mortgage with less than 10% down and that's where the objection comes in.
Which goes back to my comment that he must not know many people in his neck of the woods who believe in PAYING WHAT THEY OWE and HONORING THEIR COMMITTMENTS no matter what the rest of the world is doing.
You just don't get it. Most people won't strategically default, but MILLIONS will. It only takes 20% of those underwater on their mortgages deciding it makes more financial sense to strategically default to cause a further deterioration of the housing market. That's right, 80% won't...but 20% will...those 20% should never be put in a position to even ponder strategic default. Requiring a 10% down-payment will prevent strategic defaults.
It's not about you, it's not about the 80% of people who will honor their payments, it's about the 20% that won't and will wreck our economy due to strategic defaults.
"Their neck of the woods" has nothing to do with it, it's happening all over the country, in high-demand areas as well as fly-over country.
It IS about me, since you basically said that because I didn't make a large downpayment, I will be back on this board asking how to rebuild my credit after I've let my house go into foreclosure when it loses value. My whole point was to let you know that I am not the type of person who would do something like that.
I can't control or worry about what anyone else - 20%, 80%, or even 1% of the population does, but I can control what I do. 
Mark...I cannot help but notice that your posts seem to have a very angry undertone to them.
While these forums do welcome a lively debate on many topics, we do also ask that you be Kind, Respectful and friendly.
Tis the season......