Professor: Fear, shame keep homeowners from defaulting

Millions of American homeowners are "underwater" on their mortgages – owing more than the value of their homes – and would be better off walking away.

That is the suggestion Brent T. White, a University of Arizona associate professor of law, makes in his newly released working paper, "Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis."

White, whose article will be published in this month's issue of Arizona Legal Studies, said fear, guilt and shame are what keep many homeowners from making rational economic decisions.