This I believe will become an interesting topic. I believe a study of your state's foreclosure laws will be very helpful.
Let's assume a homeowner is using a strategic default method, an is able to pay the mortgage, however instead of paying, homeowner plays the delay game or for LS members The Hampster Wheel game.
Now let's assume your very discipline and you can delay the process for 25 months, most savvy players will delay longer however let's just assume 25 months.
Now let's assume you owe 250k on the property and it is worth 200k.. ok
Now remember, your discipline.. so let's assume your mortgage payment was 2k per month. Now you saved that 2k for 25 months under your rug.. SO you have 50k.. not bad.
Now come your foreclosure sale day, and you head over to the court house steps with 50k in pocket.. and a 44 magnum, just kidding about the magnum. Now your underwater home is selling for 180k and you raise your hand and bid. Wow you just purchased a home for 200k.. You proceed to the sherif's office to fill out some paper work and put down your 20% deposit of 40k.. Not bad, you just repurchased your home again, with the banks money.
Your new balance is 160k, so instant equity of 40k.. Assuming the value is still 200k. Plus 10k over for closing etc..
Anyway, I think everyone is getting my point. The problem that may arise is if there is any statue or law which will not allow this method to succeed, In that case, you may need to have a relative or significant other to purchase for you..
Please remember that we are all assuming here.. I just feel that this scenario, can and will happen. How will they police this method?
Just something for us LS members to think about.
I look forward to all reply's and opions. Keep thinking and fighting.