In the future, losing a home because of illness or job loss will be seen differently than choosing to abandon a mortgage obligation for other reasons, says mortgage lenders. According to Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters, if you made a strategic decision to default on paying your mortgage, it will work against you.
Jay Brinkmann, chief economist for the Mortgage Bankers Association says that it will probably be seven or eight years before walkaways are able to buy another home. “Credit scores are only one component of a complete credit decision,” he says. “[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage, “ he added.