More and more American homeowners are walking away from their mortgage, putting a damper on the housing recovery.

   "USA Today" is reporting on so called "strategic defaults" or "voluntary foreclosure."  Borrowers are able to afford their monthly payments but they've taken a look at the value of their home and decided they don't want to continue paying for something that may be worth half of what it was just a year ago.

   An estimated 16-million homeowners find themselves in that situation across the U.S., living in a home worth less than they paid for it.

   Mark Zandi, of Moody's Economy.com says strategic defaults will be a big issue.

   He says, quote, "People are going to determine it doesn't make financial sense to hold on to their homes."  Zandi adds the strategic defaults mean foreclosures could be high for a long time.

   The mortgage unit of Citigroup says one in five borrowers who defaults on a mortgage is doing so willingly, calling it "a very large number and a very, very significant risk to the housing recovery."  More worrisome, Naroff Economic Advisors economist Joel Naroff says it's becoming acceptable to do.

   He wonders what it might mean down the road for housing and the economy if people are happy to walk away and destroy their credit.

   A mortgage default can knock credit scores down 100 points and make a person ineligible for a new mortgage for at least seven years.



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