In a difficult housing market,borrowers simply choose not to pay their mortgage allowing the home to be foreclosed in a practice called negative amortization.

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Negative amortization refers to a situation where the borrower's payments are not enough to cover the interest on the loan, resulting in the unpaid interest being added to the principal balance. It is not the same as choosing not to pay the mortgage and allowing the home to be foreclosed.

In a Difficult Housing Market,borrowers Simply Choose Not to Pay