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 peaked, or be close to peaking.”
The study, developed in conjunction with the international business consulting firm Oliver Wyman, shows that the absolute number of strategic defaulters — which the companies define as those who miss six straight mortgage payments without missing payments on other consumer debts such as credit cards or car loans — totaled 355,000 during the first half of last year.
But the data shows that strategic defaults, as well as first-time mortgage delinquencies in general, declined in successive quarters in 2009, suggesting they may have crest in Q4 2008, the companies said…
To read the remainder, click here to go to DSNews.com’s article.