In the past couple of years, more Americans in a financial bind due to lack of income have made the choice to prioritize credit card payments over mortgage payments. With the close of 2009 statistics illustrated that twice as many debtors were delinquent when it came to paying their mortgage while paying credit card payments rather than paying their mortgages off first and then credit card bills.

Some of this new trend could be chalked off to the credit crunch and lower balances on cards in general, but it is even more likely for people that are watching the real estate market erode to lose faith in the value in their homes and simply give up. For a number of homeowners, walking away from their houses with mortgages that they just cannot afford seems like the only decision to make.

A common reason that many homeowners give for walking out on mortgage payments is that the only punishment is a bad credit score, which seems inevitable in this economy anyway, which leaves them little incentive to keep paying money while not building equity. Even though Americans like to take pride in the fact that we are a “civilized and industrial” country, a large amount of Americans fight to get the bare necessities: food, water and shelter.

In times of need, when there is no money on hand to feed families, credit cards become the usual financing strategy. Understandably, there is a set of reasoning that comes with prioritizing the bills this way. If a credit card is removed, someone loses the opportunity to ensure that they will have food to eat and clean water to drink and bathe in, heat in the winter, or a car to take them to work and back.

Still, experts urge Americans in this situation to try their hardest to place their mortgage higher on their priority list. A mortgage is a secured debt, which means that the bank that holds your mortgage has the ability to remove it if you don’t pay because your house is collateral. Even still, some people have no problem leaving a house whose value has shrunk dramatically, choosing to rent instead. But in a situation like this, playing the waiting game might be the best choice. Eventually the real estate market will come around, and it will pay to own a home at that time.

Mallory works for Rapid Recovery Solution and writes articles on commercial collection agencies

I would be skeptical about the idea that people who have taken out mortgages become chummy with their mortgage lenders. Mortgage lenders will raise rates as they please, and then, when they don’t get that payment, they will take away the place where you live. Today, this is an alarming trend that ends up with homeowners either underwater or renting an apartment. And now, banks are attempting to get their money back from the foreclosure sale.

As today’s economy continues to suffer, it is all too often that a house goes into foreclosure and the amount due on the mortgage is more than the amount that the house was sold for. This remaining balance is called deficiency and it leaves mortgage lenders at a loss for words.

And despite the fact that there can be an agreement with the mortgage lender or bank to sell the house for less, these institutions may still want to be paid what is owed. Certain factors may increase one’s risk for this sticky situation including credit history, other assets owned, and liens such as second mortgages.

This issue is very important to the new group of homeowners who are making the choice to walk out on their houses despite their ability to afford payments. This is known as the “strategic foreclosure.” The belief of the people that do this is that it is better to pay rent at $1,000 than $3,000 on a mortgage every month.

Obviously, the mortgage lenders look at these strategic foreclosures with disgust. And it is no surprise that they are boosting their attempts to retrieve the money that is owed on such houses. The main targets? Homeowners who are just slightly behind on home payments.

Banks and mortgage lenders do not need to take action immediately after the house is foreclosed and sold. It is in their best interest to go after the money years after the fact. Its more lucrative for them this way, because once someone recovers from financial failure and their credit goes up, there is more money to be taken.

Collection companies will collect on delinquencies starting at $25,000 or more. To work your way around deficiency judgments, always look over the paperwork. Don’t ever sign anything that says anything about remains being owed and have the mortgage lender release any more obligations on the mortgage.

Mallory McGuinness is employed by a debt collection agency. Also she composes stories on business, finance, consumer spending and debt collection.

In the midst of the real estate boom, many homebuyers extended their finances to purchase a house that might have been beyond their means. With the market on fire, people were apt to buy with low introductory interest rates and interest-only loans. They believed that their income would increase to meet their payments and predicted that real estate prices would never fall. Unfortunately, adjustable-rate mortgages have adjusted and monthly mortgage payments have gone up. Couple that with the fact that income hasn’t increased, and you will see why more people have fallen behind with their mortgage payments.

As house prices diminish and with interest-only mortgages on the decline, more homeowners actually owe more on their mortgages than what their house is worth. It doubtlessly has occurred to many homeowners that this makes sense, as many are defaulting on mortgage payments as we speak.

Here’s a quick breakdown to explain the situation. You buy a house for $400,000 that is now worth only $300,000. Thanks to an interest-only mortgage, you still are in arrears for $400,000. If you eliminated this off of your balance sheet, your net worth will increase by $100,000. You’d still need a place to live, but from this point you could purchase a more affordable house or rent for a bit of time.

One huge drawback to abandoning your house. If you do, you will kill your credit rating, making it difficult or even impossible to rent an apartment, get a new mortgage, and even a job. There is a major drawback to abandoning your responsibilities. If you walk away, you will trash your credit rating, making it more difficult or impossible to rent an apartment, qualify for a new mortgage, and perhaps get a job.

New laws are out now to assist families facing foreclosure, which will encourage people to pick options other than abandonment.

Mallory Megan is employed bya debt collection company. Also she comes up with stories about consumer spending, business and finance, and debt collection.