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strategic default: The Principal Solution to Strategic Walk-Aways - 07/02/10 08:10 PM
There’s been a lot of discussion on the subject of Strategic Default over the last year or so, with no shortage of passionate viewpoints.  It’s a favorite topic in all forms of media.  The last time we posted an article on this subject (Feb ’10) it created a virtual firestorm of response.
Ethical and legal arguments aside, it’s always been our opinion that the most practical solution to this issue is for lenders to reduce principal loan amounts.  If you can make payments on a $350K loan but the home is only worth $200K, then does it make sense for your … (12 comments)

strategic default: The Ethical Dilemma of Strategic Walk-Aways - 02/03/10 08:54 PM
Owners that can actually make their loan payments, but choose to walk away, accounted for 1 in 4, or 25% of all foreclosures as of June 2009.   That was over six months ago, and the numbers have probably gone up since the initial studies (these data can be easily verified via a quick Google search).  Strategic default is an ethical dilemma, and the discussion is burning up cyberspace.
On one hand, there is a moral obligation to honor your contract.  If you owe more than your house is worth, one way or other you gambled on your equity and came … (164 comments)

 
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Mike Bell

Santa Clara, CA

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Mike Bell, REO Broker - Realty World MBA

Address: 1125 Saratoga Avenue, Suite 3, San Jose, CA, 95129

Office Phone: (408) 984-7420

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Insightful and timely information about foreclosures and bank owned properties in San Jose, Santa Clara County and Silicon Valley


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