Still Renting

Hitting the Reset Button On Home Mortgages

If I owned a home on which I owed $500k and it had dropped in value to $400k (and the market will be going down for another two to three years, I'm betting), even if my credit rating was over 800, last months payment would be the last one I would make. I would live in it rent free for as long as possible and simply move to a rental when necessary.

I would invest the monthly savings in gold - that I can hold in my hand - and it would be in a safe deposit box. That would be the only gold portion of my portfolio.

Which is worse, bad credit for a relatively short time, or spending the rest of my life paying off a home I could never get out from under? The home loan is a secured loan. The bank gets their "security" in the end.