strategic default: Fannie Mae Says Strategic Defaults a No-No - 06/24/10 10:09 AM
There’s been a lot of talk about strategic mortgage defaults. Here’s the scenario: Bob Buyer purchases a home. After a few years the real estate market has a “correction” and the house is no longer worth what Bob paid for it. Even though he can still afford the payments, Bob decides it makes better economic sense to walk away from the house and let the bank foreclose.
Here’s a 60 Minutes segment on Strategic Defaults:

Fannie Mae has decided to take a strong position with borrowers who can pay their mortgage but choose not to. It will now take … (3 comments)