Okay so I now know someone going into foreclosure over $50k. I don't know if this is a wise move or not. Yes it's a lot of money. And yes the person does have the $50k to pay it off, but they refuse to "throw good money, after bad."
The question, is this a smart move or not? The foreclosure will ruin the person's credit. However, is it worth ruining one's credit over $50k?
I guess it's much like bankruptcy. For one person $50k is enough to drive them to declare. While for others having $300k in debt is nothing. It depends on the situation.
Would I do it? Probably not, mainly because there are too many variables which could arise from the foreclosure. It will make finding another job more difficult. It can make getting any loans more difficult. But I say the same thing about BK. However I realize I could quickly end up in either position given the right circumstances.
I wonder though if this is the right move? To the friend, my advice was to carefully consider if it is worth doing just for $50k. That's barely more than what they paid for their fancy car.