SALT LAKE CITY — Considered
a viable strategy for managing troubled assets in an era of high unemployment,
record foreclosures and government bailouts, millions of Americans are
considering strategic defaults.
With almost 12 million
mortgages underwater, a growing number of homeowners are simply walking away
from the places they call home.
Strategic defaults,
also known as strategic foreclosures, often take mortgage lenders by surprise
because homeowners generally have had excellent credit histories and have
previously met all their other financial obligations.
One of the
distinguishing factors between a strategic default and other mortgage defaults
is that the strategic default is a deliberate business decision. The homeowner has
the ability to make payments but simply decides not to because the property
value is less than the balance owed on the mortgage.
No comments:
Post a Comment