Who would have ever Thought that ALT A borrowers would defalt on loans made tA strategic default occurs when a homeowner stops paying their mortgage even though they are still financially able to do so. o them even when they could afford to make the payments. Today some say that 25 % of loan defaults are simple because the buyer is underwater on there loan and dose not see a way out And have just decided not to.A strategic default occurs when a homeowner stops paying their mortgage even though they are still financially able to do so.
"Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they've fallen behind on other accounts."
This is probably one of those shocking statistics. How can someone with a perfect credit history go from on time borrower to a strategic default? The answer is simple. For many americans their housing payment, either rent or mortgage, is the biggest line item on their budget. Increase that payment by 50, 60, or even 70 percent and you have a default waiting to happen. Housing makes up 34 percent of consumer expenditures.
Another professional Paul silver said it like Professionals, Inc."I see no way to rationalize this so as to get to a point where I can discount the moral issues in favor of the personal financial well being of the borrower, who as I said, entered into the mortgage with the understanding that the house was worth what they were paying, and that they would then have an obligation to pay that cost. The lenders made available loans that were at best shaky, to borrowers who perhaps lied about their ability to pay. But it is not all the lenders fault, as no one forced the buyers to buy homes. They agreed to the terms of the loan and purchased the house. Now to decide it was a bad idea, and to decide that they will simply default, intentionally, and live in the house for free as long as possible, Is a bad financial decision over the long haul, and in the big picture, and is morally bankrupt, period. We cannot discount the moral and ethical issues in favor of our small minded financial considerations.If you can pay, pay. If not, default, declare bankruptcy, pay the piper, and make a better decision next time. But let's not remove moral issues from the question, as these would be paramount in most other decisions we make.
We are adults who buy houses, and we have learned to take responsibility for our actions, and we teach our children to do the same. How then do we see fit to evade responsibilty here?
, So if you can pay you should remember what your grandma used to say " a wrong dose not make a right"
If you have a propblem talk to your lender.