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Strategic Defaults

The Hidden High Cost of Strategic Default

Credit.com | Posted 02.02.2013 | Money
Credit.com

By Mitchell D. Weiss If you're one of the 28% of U.S. homeowners with a mortgage that's higher than your house is currently worth, is it time to toss...

Rich Americans: 'Take My Mansion, Please'

The Huffington Post | Alexander Eichler | Posted 02.23.2012 | Business

Growing numbers of rich Americans are welcoming the foreclosure crisis into their homes. Default rates for the nation's most expensive properties ...

Message to Mortgage Banks and the Feds: It's Time to Take the Haircut

Nicholas Carroll | Posted 12.20.2011 | Business
Nicholas Carroll

The "moral hazard" is worse than you feared: Americans are figuring out that morality changes as society changes, and that morality no longer includes obediently paying the mortgage

Pay the Mortgage or Default? It's Becoming a Game of Musical Chairs

Nicholas Carroll | Posted 12.06.2011 | Business
Nicholas Carroll

In 2008, walking away from a severely underwater home was the ideal financial choice, in hindsight. In 2012 it may not be.

The Accelerating Shift in Attitudes Towards Home Walkaways

Nicholas Carroll | Posted 11.22.2011 | Business
Nicholas Carroll

There are a still few regions where foreclosure is never discussed beyond the immediate family, but it's less and less often due to the morality issue. This, I believe, is the beginning of the fourth and last wave of home walkaways.

Rent After Foreclosure? Yes, You Can.

Nicholas Carroll | Posted 07.27.2011 | Business
Nicholas Carroll

News frequently portrays inability to rent as one of the gloom-and-doom scenarios awaiting people who have been through a foreclosure. In my surveys around the U.S., I'm not seeing this.

On Principal Writedowns and Moral Hazard: Do We Want to Put Out the Fire or Not?

Dory Rand | Posted 06.19.2011 | Business
Dory Rand

We don't condemn bed-smokers to suffer the consequences of their risky behavior because the fire can spread. If we want to stop the spread of strategic defaults, principal writedowns are the most effective option.

How Men and Women Deal With a Home Walkaway

Nicholas Carroll | Posted 06.04.2011 | Business
Nicholas Carroll

A Trulia/Harris survey in 2010 found that 57% of men would consider strategic default, but only 40% of women would. In the real world of mortgage default, where walkaways are far more often for survival than strategy, I found the opposite.

Shifting the Focus From "Strategic Default" to "Prudent Walkaway"

Nicholas Carroll | Posted 05.25.2011 | Business
Nicholas Carroll

A "strategic default" currently means walking away from an underwater home even though the owner could afford to pay the mortgage. However, this repre...

What to Learn From Florida's Mortgage Meltdown

Mark Sunshine | Posted 05.25.2011 | Business
Mark Sunshine

What is happening in the Sunshine State could spread. And if it does, the financial markets will face another round of intense pressure that could be even tougher to contain than before.

For Whom the Bell Tolls: Making the Best Choice for Borrowers in a Bad Situation

Roberto G. Quercia | Posted 05.25.2011 | Business
Roberto G. Quercia

Despite efforts by industry and elected officials to discourage it, more and more borrowers may choose to exercise their option to default.

Shahien Nasiripour

Taxpayer-Owned Fannie Mae Attacks Struggling Homeowners

HuffingtonPost.com | Shahien Nasiripour | Posted 06.23.2010 | Business

Taxpayer-owned mortgage giant Fannie Mae is targeting families by going after struggling homeowners who strategically default on their mortgage, the f...

5 Reasons the U.S. Will "Probably" Default

Eric Schurenberg | Posted 05.25.2011 | Business
Eric Schurenberg

The United States will probably default on its debt one day. There, I said it. Did I get your attention?

Shahien Nasiripour

Watchdog: Obama Foreclosure Program Is Likely To Be A Failure

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

The Obama administration's signature foreclosure-prevention program is likely to be a failure and has not done enough to help struggling homeowners wh...

'Strategic Defaults' Give Homeowners A Way Out, Even If They Can Afford Payments

Los Angeles Times | Alana Semuels | Posted 05.25.2011 | Business

Time was when Americans would do almost anything to hang on to their homes. But that commitment appears to be fraying as more people fall behind on th...

Shahien Nasiripour

JPMorgan Chase Warns Investors About Underwater Homeowners Walking Away

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

The nation's second-biggest bank is warning investors that underwater homeowners may walk away from their mortgages. In a Monday filing with the Secu...

Walking Away From Your Mortgage: When It's OK To Move On

wsj.com | BRETT ARENDS | Posted 05.25.2011 | Business

Millions of Americans are now deeply underwater on their mortgage. If you're among them, you need to stop living in a dream world and give serious tho...

Shahien Nasiripour

Housing Woes To Continue, More Losses Coming

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

The nation's second-largest bank expects the number of delinquent home loans to skyrocket over the next year, echoing analysts' expectations of a gloo...

Mortgage Principal Reduction: Why "Re-Equifying" Borrowers Could Exacerbate The Mortgage Mess

WSJ | James R. Hagerty | Posted 05.25.2011 | Business

Many critics of the Obama administration's mortgage loan-modification program say it won't work because it doesn't do enough to address "negative equi...

Stephen Colbert Takes On The 'Walk Away From Your Mortgage' Movement (VIDEO)

Posted 05.25.2011 | Business

With an increasing number of people walking away from their underwater mortgages, there's much discussion among the chattering classes about so-called...

Mark Hanson: Millions More At-Risk of Default Than Most Think

Mark Hanson Advisors | Mark Hanson | Posted 05.25.2011 | Business

How many homeowners are over-levered and at imminent risk of default? This answer is...a lot more than most think, especially those who got a loan fro...

Walking Away: Questions for the Financial Crisis Inquiry Commission on Strategic Defaults, Underwater Mortgages and Risky Lending

Ray Brescia | Posted 05.25.2011 | Business
Ray Brescia

Here are some questions the financial crisis commission could ask of failed lenders that generated many of the subprime loans that have performed so poorly.

Why It's Not Unethical To Desert A Mortgage

The Big Money | Mark Gimein | Posted 05.25.2011 | Business

Last month a study from the credit reporting agency Experian and consulting outfit Oliver Wyman estimated that close to a fifth of troubled mortgages ...

Shahien Nasiripour

If Morgan Stanley Walks Away, Why Shouldn't You? Firm Walks Away From 5 Properties

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

To the extent that Morgan Stanley is leading by example, the securities colossus is sending an unlikely message to underwater homeowners: Walk away. ...

"Strategic Defaults": Mortgage Holders With High Credit Scores Are Leaving Their Homes

latimes.com | Kenneth R. Harney | Posted 05.25.2011 | Business

Who is more likely to walk away from a house and a mortgage -- a person with super-prime credit scores or someone with lower scores? Research using...