Hacker News Reader

You generally don’t actually have to pay your mortgage - you just lose the house if you don’t (well, and take a hit to your credit score).

People can and do walk away from a place when they’re underwater.

This is country-dependent. In New Zealand, you cannot walk away from the mortgage. You might be able to if you declare bankruptcy, perhaps.

The whole point of the mortgage is that it's backed by the property.

Doesn't your credit take a major hit though? Then you'd have a harder time buying a new place for some years.