12 Percent of all Defaults are Strategic
U.S. homeowners are deciding to strategically default in greater numbers. A homeowner strategically defaults by ceasing mortgage payments he could otherwise afford because the loan is underwater. According to Morgan Stanley, approximately 12 percent of all mortgage defaults in February 2010 were strategic, up from 4 percent in mid-2007. A Morgan Stanley analyst stated that […]
Strategic Default
Voluntary strategic defaults pose a new wave of defaults hitting the already battered housing market. A strategic default is voluntary. It occurs when the borrower decides to stop making payments, or defaults on a home mortgage despite having the financial ability to make the payments. Usually, this occurs after a substantial drop in the house’s […]