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 widely thought.

In fact, he said, their decisions to pull the plug “may not turn out to be economically rational.” But they walk anyway, in large part because they are at the end of their emotional rope. They have transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and a financial system they consider unfair.

Looks like there is much more trouble for the “lenders” then they anticipated…

Arizona Legal Studies
Discussion Paper No. 10-15
The Morality of Strategic Default

Brent T. White
The University of Arizona
James E. Rogers College of Law
May 2010

Abstract: Responding to those who argue that homeowners who strategically default on their mortgages are immoral and socially irresponsible, this article argues that breaching a mortgage contract is not only morally acceptable, it may be the most responsible course of action when necessary to fulfill more important obligations to one’s family.

See entire paper below…


The Morality of Strategic Default – Brent T. White
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