Industry NewsMortgage

Have ‘strategic defaults’ peaked?

Borrowers with 'super-prime' credit more likely to walk away
Published on Jun 29, 2010

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by CareyBot

A study of borrowers who could afford to continue paying their mortgages but chose a "strategic default" because they owed more than their home was worth suggests the practice peaked at the end of 2008.

But strategic defaults won't be going away anytime soon, and are suspected to be motivation for one out of every five mortgage delinquencies during the second quarter of 2009, new research from Experian and Oliver Wyman shows.

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