As the economy continues to suffer and property values deflate, more and more Americans are voluntarily walking away from their homes and mortgages.  This wave of voluntary foreclosures are known as strategic defaults.

It is predicted that scores of homeowners will consider walking away from their homes in the coming 18-24 months, adding yet another layer of distress to an already beleaguered real estate industry.  Quite simply put, if homeowners feel it makes no sense to hold on to their overvalued homes and walk, it could become a significant drag on the real estate market for many years to come.

California and Florida are currently facing the highest number of strategic defaults in the country.  Until prices stabilize and mortgage lending becomes more readily available, we may be reading about this and seeing it occur in our neighborhoods in the months and years ahead.

Auction Generation is a full service real estate company offering  a full menu of BPO and REO services. We also list, sell and auction real estate.  For more information, please contact Troy fowler at 305-206-0349