NY TIMES – Deadbeats??? Biggest Defaulters on Mortgages Are the Rich

“Two years ago when the first waves of defaulting mortgages started occurring I saw a lot of ‘moral hazard’ references in comment sections. The less well to do and financially unsophisticated were scorned for being so foolish as to take on debt they should have known they couldn’t handle. So where’s that moral hazard now. … 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

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