Tuesday, May 17, 2011

Strategic Default

The GSE found that because of feelings that they are less financially secure, 27 percent of homeowners with negative equity would consider strategic default as a viable option. That stat is based on a nationwide poll taken during the first three months of this year, and is up from 15 percent who answered so in the January 2010 survey.

Respondents to the academia poll said they believe homeowners are choosing not to pay their mortgages because they are unemployed or underemployed (46 percent) or because they over-borrowed (35 percent) due to the state of the economy.