Yesterday’s post, titled “Is Renting the New American Dream?,” showcased the story of several borrowers who walked away from their mortgages and found greater financial freedom in doing so. While we advocated that walking away is morally wrong, it seems to be a growing consensus that the strategy may not be all that bad.

University of Arizona law professor Brent T. White wrote a  paper titled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis.” It explains that emotions (feelings of guilt or immorality) tend to cloud a homeowner’s decision to walk away from their mortgage debt.

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Update3: If you’ve been ushered into a long-term trial mod, one non-profit wants to hear your story. Click here to find out more.

Original Post (published 12/10/09): We’ve covered the Treasury’s Making Home Affordable Program (MHA) quite a lot since it’s inception and have been quick to point out the program’s flaws as well as the flaws others have noticed. The White House has focused less on addressing the structural flaws of this program — which we feel have created a host of “unintended consequences” — and more on prodding lenders and servicers to step up their game.

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