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The New York Times took a look today at that You Walk Away company based in San Diego that launched last month. The Wall Street Journal did the story today, too.

(I interviewed the businessmen for this story a few weeks ago, and just ran into Chad Ruyle, one of the co-founders, yesterday at a television taping at the local CW for a special on foreclosures. I’ll keep you posted on the broadcast schedule.)

I wanted to pull out a great quote from the NYT story:

The same sorts of loans that drove the real estate boom now change the nature of foreclosure, giving borrowers incentives to walk away, said Todd Sinai, an associate professor of real estate at the Wharton School of Business at the University of Pennsylvania.

“There’s a whole lot of people who would’ve been stuck as renters without these exotic loan products,” Professor Sinai said. “Now it’s like they can do their renting from the bank, and if house values go up, they become the owner. If they go down, you have the choice to give the house back to the bank. You aren’t any worse off than renting, and you got a chance to do extremely well. If it’s heads I win, tails the bank loses, it’s worth the gamble.”

KELLY BENNETT

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