Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit. Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater (owe more than the house is worth) mortgage.
After default (foreclosure), they reason, they can raise their FICO scores by paying all their bills on time and eventually finance another home purchase. Don't count on it.
While homeowners who default due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again, walkaways may face double that time.
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