``"These survey results suggest that economic and financial considerations are not the dominant drivers of behavior for even deeply underwater borrowers," said Pulsenomics Founder Terry Loebs. "This underscores the challenges in valuing underwater mortgages and in determining the costs and benefits of principal forgiveness initiatives."''
I agree wholeheartedly with Jim Surowiecki's sentiments this week about strategic default and the way in which it's entirely rational for homeowners to walk away from their underwater mortgages. Read Post
As home prices have fallen, growing numbers of borrowers wound up owing more on their homes than the homes are worth. For at least two years, we've been hearing that this situation will result in more mortgage defaults as borrowers ... Read Post
A quarter of American homeowners now owe more on their mortgages than their homes are worth and millions of them are thinking about just walking away. "Strategic defaults" on so-called underwater mortgages are on the rise, although ... Read Post