Math and the housing market

Help me out here, folks. I was reading this article about former Kings basketball star Kevin Martin being sent a notice of default on his million-dollar Rocklin home and I am left curious.

Martin, who will earn $10 million this year playing for the Houston Rockets, first missed a payment on his $1.5 million home loan in June, according to Foreclosures.com. His lender filed the notice of default last month…Martin’s Rocklin home is listed for $1.1 million as an “active short sale,” meaning that if someone buys at that price, his bank could take a loss…Martin paid about $1.9 million for the home in the gated Whitney Oaks subdivision in July 2007.

Is the 1.5 million number referring to what he owes on the house still? And how does someone making 10 million a year allowed to short sell his home? And we’re supposed to rest assured knowing that Kevin is not going to walk away from this home because he’s a stand-up guy? What if this property had gained in value? Would he have donated the profits of the sale to a local charity? You know, because he’s a stand-up guy? I wonder. You invested in a property that went south, you have to live with the consequences, right? At least you do when your income hasn’t been severely altered like so many others in this country. Obviously I am no expert and do not know the details of this particular case, but it sure is tough to read as a tax payer and Sacramento resident who is upside down on his home that someone with the means to pay his bills is finding away to get around them.

Help me out here. Am I way off base? I am assuming I can blame Obama here though.