I never quite got this: Pretty often I read about a foreclosure and look at the numbers and they are not THAT bad, the house would sell for this or even a bit more. Nevertheless they are already deep into the foreclosure process and in 6 weeks they are out of their home. No attempt of a sale. Just sitting there, staring at the snake.
Or they owe 360K and have their house, worth about that, on the market for 1.5 years for 450K all while the market is going down further, making sure they will not even be able to pay off the loan once this hits the fan.
So is this stubbornness? Ignorance? Bad Advice? Poor agent? Head in the sand? Denial?
All of the above? Why not facing the music and exit gracefully? The information is out there, not even hidden. Plain sight information, tools, support.
If the problem is not tackled it will eat you. So be proactive and sell, pay off the mortgage and start from scratch without debt, rent something, wait a while and then, when the money to back it up is there, start anew. With clean credit and a payment history and BEFORE the bank starts sending out those letters.
Especially when the ending is clear and inevitable, facing and solving the problem is the better alternative!