At the risk of being simplistic, why should I care if Im in a negative equity situation, espeically if I plan to own the home until the morgage is paid (20-40 yrs)? Most people are immediatly in a neg equity situation with the vast majority of things they buy on credit, autos being the best example of this. I just bought a pre-owned car Im gonna be in a neg. equity situation for at least the first half of the loan term. And UNLIKE a house, Ill NEVER be able improve the car or through normal supply and demand see its value go UP.
Neg equity or not, Im still putting money towards ownership and paying down my priciple.
Or...again...am I missing something.
Im just asking here....not trying to defend one postion or another.