There are many homeowners who are underwater with their mortgage. When these homeowners decide to no longer pay on the mortgage and walk away from their home, this is called Strategic Default. These homeowners feel that they are wasting money by paying their monthly mortgage payment as they are not making any appreciation on their home. The customer's are not really concerned that their home will go into foreclosure, and that their credit will be ruined. They are more concerned that they will not be wasting any more money on a home that is worth half of what they paid for. However, there are mortgage companies that are starting to go after these strategic defaulters and collecting what is owed. It could be a long and tedious process for these banks but in the end they can and probably will come after you for walking away from your liability. In many cases it may be beneficial to try to work out some other type of solution, for example a loan modification, with your mortgage company to avoid a deficiency balance owed.
