Enough is Enough – Owners Stop Paying Mortgages, and Stop Fretting

From the lenders’ standpoint, people who stay in their homes without paying the mortgage or actively trying to work out some other solution, like selling it, are “milking the process,” said Kyle Lundstedt, managing director of Lender Processing Service’s analytics group. LPS provides technology, services and data to the mortgage industry. These “free riders” are … Read more

The Morality of Strategic Default – Brent T. White

Brent T. White, author of  Underwater and Not Walking Away – Strategic Default has now published a paper based on the personal accounts of 356 strategic defaulters and homeowners on the verge of doing the same. His finding: People who intentionally default on their loans are not as economically rational or calculating in their decision-making as … Read more

Screw You Freddie!!! Freddie Mac Shames Strategic Defaulters, tells them: For shame, don’t do it!

Get a load of this crap… From Freddie Mac’s “blog” A Perspective on Strategic Defaults Some excerpts… As the mortgage industry works through a large volume of loan delinquencies, a new and growing concern has emerged: strategic defaults. In other words, borrowers who have the financial means to make monthly mortgage payments, but choose not … Read more

60 Minutes examines epidemic of homeowners who walk away from underwater homes

A million Americans who could afford to pay their mortgages on homes “underwater” walked away instead. It’s the “in thing” one tells Morley Safer in a report to be broadcast this Sunday, May 9, at 7 p.m. ET/PT. Play CBS Video Video Excerpt: Walking Away From Your Mortgage (AP Photo/Patrick Semansky) (CBS) Chris Deaner could … Read more

NY Times – No Help in Sight, More Homeowners Walk Away

By DAVID STREITFELD Published: February 2, 2010 In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040. “People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not … Read more

Underwater and Not Walking Away – Strategic Default

Shame, Fear and the Social Management of the Housing Crisis Brent White University of Arizona Despite reports that homeowners are increasingly “walking away” from their mortgages, most homeowners continue to make their payments even when they are significantly underwater.  This article suggests that most homeowners choose not to strategically default as a result of two … Read more

Walk Away From Your Mortgage! NY Times

The Way We Live Now Walk Away From Your Mortgage! By ROGER LOWENSTEIN Published: January 7, 2010 John Courson, president and C.E.O. of the Mortgage Bankers Association, recently told The Wall Street Journal that homeowners who default on their mortgages should think about the “message” they will send to “their family and their kids and … Read more

Stratigic Default – Finally: Mainstream Press (Intentional Defaults)

Posted by Karl Denninger The Market Ticker I have written about “strategic defaults” many times in The Ticker, with the most recent being right here: Therefore, until the law is changed to prohibit the use of said “Strategic” legal containers and the resulting option of business interests – including the banks that are complaining now – to … Read more