What Choices Did Homeowners Have to Get Out of the Mortgage Crisis?

The drop in home prices caused by the mortgage crisis resulted in some homeowners possessing property worth less than the value of their loans taken to pay for that property. Between this loss of home value and the increasing interest rates tied to the federal funds rate, homeowners could neither pay their mortgages off nor sell their homes without taking a significant financial loss. Therefore, most homeowners were forced to default on their mortgages.