Why strategic defaults benefit the dialog on housing. Strategic defaults moving faster than HAMP modifications. The movement for stronger mortgage requirements.
I know many of you have strong opinions regarding strategic defaults. People have a hard time blending in moral and financial obligations. It really is a fine balance and public discourse gets muddied with emotional arguments to a somewhat obvious economic issue. The housing market has not been normal for over a decade. Even today [...]
Strategic Defaults go Mainstream – Why the strategic default trend shows us the need for larger home buying down payments.
You know something has gone mainstream when it hits 60 Minutes. The latest episode on 60 Minutes discussed the topic of strategic defaults and how 1 out of 5 current foreclosures are actually occurring because people are voluntarily choosing not to pay their mortgage. This is a trend that started last year and has picked [...]
Strategic Default and Walk Away from that Albatross of a Mortgage – Strategic Default increased by 68 Times from 2005 to 2008 in California. The Economic Psychology of Walking Away and is a 200 Point Drop in Your Credit Score Worth Holding Onto a Property?
As the stigma wears away and more Americans find themselves with unmanageable housing payments, many are making the conscious decision to walk away from their mortgage. What occurs in a walk away, as opposed to a standard foreclosure, is the borrower is making a business decision to stop making their housing payment. Now this compares [...]