How to cut the number of strategic defaults?
DSnews reported – An alarming number of homeowners see strategic default as a viable option should their home continue to depreciate. Almost half of the homeowners participating in an online poll from Housing Predictor say they will walk away from their mortgage obligation if falling home values persist. See Full Story
I have a theory. The current model of doing loan modifications for people that are behind is fine. HOWEVER, the banks are rewarding the people who are NOT making their mortgage payments while the ones that are diligently continuing to pay their mortgage are pretty much getting forgotten or given short shrift. Homeowners that are current see the inequity of this. They think “To get any help I must give in and go delinquent”. Continue reading