1 in 5 Choosing to Default on Mortgages Though They Can Pay
Nearly one in five delinquent mortgages through the first half of 2009 was owned by someone who could afford to pay, but decided defaulting was a smarter financial play.
Palm Coast, FL – June 29, 2010
By: Kimberly Miller – Palm Beach Post staff writer
Palm Beach – June 28, 2010 – Nearly one in five delinquent mortgages through the first half of 2009 was owned by someone who could afford to pay, but decided defaulting was a smarter financial play.
The decision to walk away, called "strategic default," was studied by crediting agency Experian and international consulting group Oliver Wyman.
Their results were released in a report today that found 19 percent of mortgage defaults nationwide in the beginning of 2009 were strategic. The absolute number, 355,000, was a 53 percent increase from the same period the previous year.
Florida real estate experts were surprised by the 19 percent figure – not because it was so high, but because it was so low.
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Source: The Palm Beach Post
Mortgage Defaults
Hi Toby,
This is what I wrote to you about the other day.
John