[kabar]

Doesn't matter. You live in a house worth whatever the market will bear - $200K, $100K, etc., and you continue to make your monthly payment. Month after month, year after year, the value of the house may change (up or down), but you keep paying and there is no foreclosure.

That's not the point. It is up to you to decide whether you want to pay and if you have a balloon loan or ARM you may not be able to pay. It is a personal decision and the fact that the mortgage may be twice the current value of the home in the example I provided, will influence any decision one might make. That's the point.

However, if you decide to stop making payments (for whatever reason), then yes, you'll end up in foreclosure.

Duh. What a silly statement. How else can the home go into forecloure?

[oh8eleven]

It is a personal decision
That's right! It wasn't that they couldn't afford to keep paying the mortgage.
It wasn't the fact the house was worth less than when they bought it.
They just decided to stop making the payments - that's what caused foreclosure.