Devoted to interest rates, loans, and lending institutions

Not too long ago, some noticed that bankruptcy was beginning to serve as a part of financial planning. The house could be protected, and some of one's debt wiped away. If you could manage to make your mortgage payments, holding on to your house, bankruptcy began to be a viable financial planning option. One that would drop of your credit report in 7 to 10 years.

Now that same attitude seems to be moving to foreclosure. A growing mortgage trend is for homeowners to simply walk away. Like bankruptcy, a foreclosure eventually disappears from your credit report. And, thanks to the recent mortgage debt forgiveness tax relief, foreclosure is even more attractive in terms of financial planning. Inman News reports on how the consequences of foreclosure are diminishing:

Not only the social stigma, but also the financial pain of foreclosure has diminished. Landlords reportedly have put out the welcome mat for former homeowners despite their impaired credit. Everyone seems to acknowledge that even a foreclosure will drop off a credit report in a matter of a few years, and that then these walk-away homeowners will be ready and able to get new mortgages and purchase new homes. Expect them to do so just in time for the next upturn in the housing cycle.

What do you think? Is foreclosure smart financial planning? If you are more concerned about monthly expenditures, and owning a home isn't important to you, it just might be.