high ltv +mort. payment > rent = default

I am never disappointed that people who talk about subjects like this one leave out what is probably one of the most important factors: owner psychology. It seems it's never considered, and it plays a huge role in defaults.

psychology = judgment. judgment means evaluating skin in the game(ltv) & paying mortgage vs rent(debt service coverage)

What I'm saying is that people's general total unwillingness to accept the concept of 'sunk cost' plays a much bigger role than economists allow for. I think this is because almost all economists models assume rational behaviour and when it comes to RE, most behaviour is not.