Why do people leave their homes?

Answer 1

This question is very general, but I will assume you're referring to the "walk-away" phenomenon that has arrisen from the mortgage meltdown. People are doing something they have not done in recent history, and that is to consider their homes from a business perspective. For people who bought a home for $400k and similar or better homes are now worth $200k, there is no forseeable point at which this will become a positive investment. They can't refinance, they can't sell, they can't move. And many of them streched their budget to get in the door in the first place. It is worth the damage to credit to get out from under a bad investment and either use family to re-purchase a home at the lower price, or wait a few years and buy another home. Those who purchased at market peak will see the home as a major debt that negatively impacts their current situation and their economic future more than the effects of leaving the home.