strategic default - Articles

Strategic Default Has a Hidden Cost You Might Not Be Willing to Pay

By Mitchell D. Weiss If you're one of the 28 percent of U.S. homeowners with a mortgage that's higher than your house is currently worth, is it time to toss the keys to your lender and walk away? According to Zillow's third quarter Negative Equity Report, some 14 million people combine to owe an estimated $1 trillion... Continue Reading »

More Americans Consider Strategic Default on Mortgages an Acceptable Option

After years of economic turmoil faced by millions of Americans, a large number of consumers now have new attitudes toward the kinds of financial missteps that can land borrowers in credit trouble, including strategic defaults. A sizable amount of Americans now consider it socially acceptable to have a low credit score or... Continue Reading »

Principal Reduction: Is Debt Forgiveness Fair?

Few topics have sparked more debate among housing market watchers than mortgage principal reduction. Its proponents tout debt forgiveness as one of the surest ways to counteract the housing slump. Its critics label it a handout that would cost taxpayers and spur further defaults. The arguments for and against are only... Continue Reading »

Strategic Default: Would Half of Homeowners Walk Away?

While there may be signs that the housing market is mounting a comeback, homeowners hit hardest by the real estate meltdown aren't growing any more patient, a new poll suggests. An online poll conducted by real estate website HousingPredictor found that nearly half of of those who responded said that they would walk away... Continue Reading »

Millionaire Foreclosures on the Rise

By Jessica Dickler, CNNMoney NEW YORK -- Five years after the housing bubble burst, America's wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country -- and many of them are doing so voluntarily. Over 36,000 homes valued at $1 million or more were foreclosed on -- or at... Continue Reading »

Walking Away From The Mortgage: One Man's Story

By Ryan J. Downey I made my last mortgage payment on Nov. 1, 2009. Bank of America changed the locks on my house on Sept. 29, 2011. I realize that my results may not be typical and that every situation is unique. But I'd like to provide people in a similar spot with something that wasn't readily available to me when I... Continue Reading »

Who Walks Away From a Mortgage? Not Whom You'd Expect

Peter Safronoff drives a Hyundai and lives in a rental bungalow in Encinitas, Calif., a beach community north of San Diego. At 63, it's not the golden-years lifestyle the financial consultant planned on, but it's the one he has. "I live in a beautiful place, in more modest circumstances," he says, "but at least I know I... Continue Reading »

FICO Now Predicts Strategic Default: Don't Walk Away

Think you know your neighbors? FICO Labs, a unit of the Fair Isaac Corp., is implementing a new technology that will measure the likelihood of a homeowner walking away from their mortgage, even when they can afford the payments. The concept is known as strategic default, and it has been difficult to predict in the past.... Continue Reading »

Million-Dollar Home Defaults: Just What the Doctor Ordered

When Junaid Nazeer's wife, Neelofur, lost her job as a pathologist for a private medical lab her income plummeted from $400,000 to just about one-fifth of that. Now Neelofur is working through a fellowship to be a pathologist in a hospital environment. In November 2010, six months after she lost her job, the Chicago couple... Continue Reading »

Walking Away From Mortgage: What to Consider

Walking away from your mortgage has become a trend as more homeowners find themselves underwater -- that is, their home is worth less than their mortgage. But as Ann Brenoff explains, at our sister site, WalletPop.com, you need to know the consequences of strategically defaulting before making the leap. As home values... Continue Reading »

Strategic Default Gaining in Popularity

The growing popularity of strategic default can't be denied. Forty-eight percent of homeowners surveyed say they would consider a strategic default -- also known as walking away -- if their home were underwater, in the latest research done for RealtyTrac and Trulia. That's up from 41 percent in May. Yet the banks still... Continue Reading »

Walking Away From Homes Losing Appeal?

Now that the housing market is bottoming out in many areas of country and even showing some signs of recovery, is strategic default a passing phase or still worth considering? The San Francisco Federal Reserve concludes that the default point "depends on a borrower's expectations regarding future house price changes and... Continue Reading »

Mortgages: Walking Away Gets Moderate Acceptance

There's nothing like a housing crisis to inspire moral ambivalence. In a recent survey conducted by the Pew Research Center, more than a third of respondents said walking away from a mortgage is acceptable in certain situations. While a solid majority (59 percent) believes that so-called "strategic defaults" are wrong, an... Continue Reading »

Double Dip in Housing? Depends on What You Mean by Double Dip

When the International Monetary Fund warned of a potential double dip in the housing market last week, it raised the question yet again of what would constitute a double dip, and how will it affect homeowners? The IMF pointed to the fact that, while signs of recovery are stronger than expected, the backlog in foreclosures... Continue Reading »

Are You Likely to Walk Away From Your Mortgage?

Do borrowers who decide to walk away from their mortgages by choice share certain characteristics? The answer appears to be yes. A leading credit bureau partnered with a management consulting firm to figure out who is strategically defaulting and how lenders can get a better handle on risky borrowers. Experian and Oliver... Continue Reading »

Mortgage Walk-Away Not Favored, Even by Borrowers in Need

You probably won't be surprised to learn that the key reasons people just walk away from their homes involve job loss and a significant drop in home value. What might surprise you is how long people hold onto their homes before they decide to walk away. The Federal Reserve found in a recent study that most strategic... Continue Reading »

Walk Away From Mortgage? Fannie Mae Will Give You the Freeze

If you choose to walk away from your mortgage rather than work something out with your servicer, Fannie Mae will block you from getting another mortgage for seven years from the date of the final foreclosure on the house. That's according to new rules that go into effect immediately. But, if you do work with your servicer... Continue Reading »

The New Mortgage Revolution: Walk Away

Big real estate developers do it all the time - like yesterday, when the owner of New York City's Stuyvesant Town complex decided to stop paying its $3 billion mortgage. So why are you still writing a check every month on that mortgage that's much bigger than your home is actually worth? Good question, University of... Continue Reading »

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