This is the best answer for the average person? Sure, your credit rating might be hurt, but you’ll save $1000s and get treated like a rich person by politicians.

Why do I think this? Today’s thought-provoking blog post at wisebread, which relates to an article by Peter Schiff at the San Diego Union-Tribune saying just that.

“Nobody likes foreclosure, least of all politicians. The new law clearly indicates that the government will make major efforts to reduce foreclosures through “term extensions, rate reductions and principal write-downs” of the troubled mortgages that it buys from the private sector. In other words, your new landlord will bend over backward to keep you in your home. The legislation telegraphs this by including a provision that extends until 2013 the exclusion of loan reductions from taxable income. “