Also (for non-recourse state): House cost: $200,000 Down Payment: $10,000 (5%) (Time passes...) Value at foreclosure: $100,000 (massive change) The bank se

Also (for non-recourse state): House cost: $200,000 Down Payment: $10,000 (5%) (Time passes...) Value at foreclosure: $100,000 (massive change) The bank sells the house for $100,000. You don't get your $10,000 back. But you're not on the hook for anything. You walk away minus $10,000 (i.e. 1x) and a hit to your credit. You went from owing the bank $190,000 to owing $0.