Many American homeowners with mortgage loans will let their homes become foreclosures houses if their negative equity reaches $100,000, according to a study conducted by business and management researchers at the Northwestern University and University of Chicago . The researchers discovered that around 26 percent of home loan defaults in the U.S. were done deliberately. Homeowners with mortgages simply walked away and let their homes become foreclosures houses even if they had the funds to pay the loans because they think it is not financially logical to keep paying when home values keep falling.

The government recently unveiled new incentives to use the $8,000 tax credit for new home buyers in hopes of jump-starting our housing dilemma.   The worst recession in over 80 years has the government brainstorming ways to overhaul the housing market with fresh incentives to entice buyers to move swiftly. The initial $8,000 tax credit was a great motivation to buy a new home complimented by record low interest rates that made home buying a win-win situation.