Underwater homeowners hanging on

Fears that droves of underwater homeowners will walk away from their homes in “strategic defaults” may be overblown, research by economists at the Federal Reserve Bank of San Francisco suggests. In California, Florida and Nevada, more than one in five mortgages have principal balances that are greater than the estimated value of the homes that …

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Experian Says Phenomenon of “Strategic Defaults” May Have Peaked

A new study released Monday by data service provider Experian finds that nearly 1 in 5 mortgage delinquencies during the second quarter of 2009, or 19 percent, was the result of a borrower intentionally, strategically defaulting. The company called the share of walk-aways “high,” but said “there is reason to believe the phenomenon may have …

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Fannie Mae Intensifies Penalties for Strategic Defaulters

Despite being able to afford their monthly mortgage payments, some borrowers are walking away from their homes based on the sheer fact that the property is currently worth less than what is owed. This phenomenon, dubbed “strategic default,” isn’t looked upon kindly, as it unnecessarily adds to the growing number of foreclosures across the nation. …

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“Strategic Defaults,” A Growing Scourge

I received an article from Housing Matrix on strategic defaults the other day; quite an informative read! Read the article below: There are many circumstances that could lead to an unavoidable default–job loss and illness head the list.  One might categorize these as involuntary defaults.  In years past, these defaults were infrequent and lenders were …

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