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Another "Expert" advises strategic default
James Surowiecki is a writer for the highly regarded financial publication The New Yorker. He was interviewed on CNBC's Squawk Box this morning, and he feels that more people need to consider strategic default as a solution to their underwater home loans. He cites the fact that American Airlines is strategically defaulting on their debt as support for his position.
Mr. Surowiecki may be a thoughtful writer, and he may be on to something with his comparison of Joe Sixpack to American Airlines. He may however be comparing apples to oranges, and I don't think it's possible to get orange juice by squeezing apples. In the interview, one of his main points was that you probably won't be the object of any type of collection action after the foreclosure, at least if you live in a non-recourse state. This sounds to me like barber shop legal advice, and it's probably a good thing that Mr. Surowiecki does not need a license to write stuff. What happens to licensed real estate professionals when thay give legal advice? At the minimum, they become unlicensed real estate professionals.
The comparison of a person to a corporation is perhaps a little unrealistic. If I own ... more
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