More than 25% of foreclosures are intentional, economists suggest

A sign of the times; this one from Littleton, Colo., near Denver. Photo by David Zalubowski / AP

The in-the-toilet economy and high foreclosure rates may be a bonanza for some -- like how do you get rid of a house you can't afford? This is from TIME:

Up to 26% of U.S. homeowners who stop paying their mortgage may be doing so intentionally, not because they can't make the payments but because they don't want to put money into a house that's worth less than what they owe. That finding, from a paper by economists at the University of Chicago, Northwestern University and the European University Institute, raises some doubt about the approach the Obama Administration has taken toward stabilizing the housing market. The current approach focuses on whether or not homeowners can afford their monthly payments, and largely ignores the fact that some 20% of homeowners owe more than their house is worth — a situation known as negative equity, or being "underwater," which, according to the paper's findings, may itself trigger default ...