A Wave of Voluntary Foreclosure

In the wake of the "subprime mortgage" meltdown, thousands of homeowners are being displaced due to foreclosure by lenders. This is typically the cataclysmic end homeowners attempt to avoid at all costs. However, new batches of owners are simply defaulting on their loans voluntarily and entrepreneurs have sprung up to assist the owners in so doing. Some economists view the practice as frugal; by choosing to default before putting themselves into deep debt, people are able to re-establish their credit scores faster and walk away with money in hand. By providing owners with details on loopholes and laws, many voluntary foreclosures have allowed families to continue living in a home for months without making payments while they look for a new residence.