As today's economy continues to suffer, it is all too often that a house goes into foreclosure and the amount due on the mortgage is more than the amount that the house was sold for. This remaining balance is called deficiency and it leaves mortgage lenders at a loss for words.

And regardless of the fact that there can be an agreement with the mortgage lender or bank to sell the house for less, these institutions might still want to be paid the remaining balance. Some factors may increase one's risk for this sticky situation including credit history, other assets owned, and liens such as second mortgages.

This problem is especially important to a new group of homeowners who are opting to walk out on their houses even though they are able to afford payments. This is known as the "strategic foreclosure." The belief of the people that do this is that it is better to pay rent at $1,000 than $3,000 on a mortgage every month.

Obviously, the mortgage lenders are not big fans of these strategic foreclosures. Not surprisingly, they are ramping up their efforts to get back the money that is owed on these houses. The main targets? Homeowners who are only slightly behind on home payments.

Banks and mortgage lenders don't have to address this issue right after the house is foreclosed and then sold. It is actually in their best interest to go after the money years after the fact. It is much more lucrative for them this way, because once someone recovers from financial failure and their credit goes up, there is more money to be taken.

Collection companies will collect on delinquencies starting at $25,000 or more. To work your way around deficiency judgments, always look over the paperwork. Don't ever sign anything that says anything about remains being owed and have the mortgage lender release any more obligations on the mortgage.

Mallory McGuinness works for a debt collection agency. Also she composes stories on business, finance, consumer spending and debt collection.

As house prices diminish and with interest-only mortgages on the decline, more homeowners actually owe more on their mortgages than what their house is worth. It doubtlessly has occurred to many homeowners that this makes sense, as many are defaulting on mortgage payments as we speak.

Here's a quick breakdown to explain the situation. You buy a house for $400,000 that is now worth only $300,000. Thanks to an interest-only mortgage, you still are in arrears for $400,000. If you eliminated this off of your balance sheet, your net worth will increase by $100,000. You'd still need a place to live, but from this point you could purchase a more affordable house or rent for a bit of time.

However there is one large drawback to abandoning your house. If you do, you will trash your credit rating, making it difficult or even impossible to rent an apartment, get a new mortgage, and even a job. There is a huge drawback to abandoning your responsibilities. If you walk away, you will destroy your credit rating, making it more difficult or impossible to rent an apartment, qualify for a new mortgage, and perhaps get a job.

New legislation is out now to be of assistance to families facing foreclosure, which will encourage people to pick alternative options other than abandonment.

Mallory Megan works for a debt collection company. She also composes stories about consumer spending, business and finance, and debt collection.