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strategic default: Fannie Puts Some Teeth Into Strategic Defaults. Does It Matter? - 06/25/10 04:13 PM
Up until now about the only thing preventing millions of homeowners from strategically defaulting on their home was the moral dilemma many of them faced. With as many as 1/3 of the nations 45 million homeowners currently upside-down in their homes (owing more than they can sell it for), lenders fear that a 3rd (or 4th, depending on how you keep track) wave of foreclosure activity could be launched by millions of owners simply walking away. They can afford to make the payments but the strategic argument is that they can re-build their credit and build equity in a new home … (2 comments)

strategic default: Social Control of the Housing Crisis vs. Strategic Default - 11/30/09 11:34 AM
Brent T. White, an Associate Law Professor at the University of Arizona, has published a 50+ page paper on why he believes homeowners who are upside down in their mortgages should just walk away. It's an interesting piece and, while I don't agree with some of his hypothesis and conclusions, he does have some valid points.
You can read the whole paper here and I would love to hear your comments. I know we are seeing more 'strategic defaults' in our area and there are those that are voicing concern that a new wave of these may derail the fragile recovery … (2 comments)