Agreed.

My statement assumes that Plantman hasn't yet fallen behind on his payments.

A bank will not likely enter into negotiations with a property owner unless they have already fallen behind on their payments. In other words - a short sale won't happen without "pain" in the form of ruined credit or other remedy to the bank.

To me, "walking away" implies Plantman is current on his payments, but doesn't want to continue sinking more dollars into the property for financial reasons.

In determining whether to agree to a short sale, his lender will look at his financial picture and wonder why he:

1. Still has an income that can pay for the note.
2. Has $XX,000.00 in equity in his primary residence
3. Is current on the payments

As they peer into his world, they will wonder why they (the bank) are the only one 'losing' in this scenario. They very well may deny considering a short sale until he defaults, loses his income or has no other assets from which to draw equity from.