strategic default: Another "Expert" advises strategic default - 12/19/11 02:43 AM
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 … (5 comments)

strategic default: Housing Depression, Will the Ship Ever Turn Around? - 09/23/11 06:31 AM
Lower real estate values are a fact of life in this country and many others.  Even some homeowners whose down payment was 20% or more are now underwater.  The fact that the loan is now higher than the home's value is not a valid reason to walk away.  Valid or not, more people are considering strategic default as their homes continue to lose value faster than the standard amortization table can keep up.
A substantial risk with an underwater home is the lack of a dignified way to dispose of it when the owner faces financial difficulties.  If you can no … (3 comments)

strategic default: Strategic Default Is the Next Big Surprise - 06/10/11 03:11 AM
Despite conditions that should have been apparent to most of us for years, the collapse of the housing industry took most of us by surprise.  Even when there were obvious signs that the housing ship was sinking, entities like the NAR and the President remained in denial, insisting that the industry was strong.  Even as the downward spiral continued, the talk was that a soft landing was imminent. The three most striking elements of the observations of government, professional organizations, and a fair number of "experts" were, Blah, Blah, Blah.  They denied the issue until it buried us.
Now we have … (46 comments)

Mike Carlier, More opinions than you want to hear about. Rainmaker large

Mike Carlier

More opinions than you want to hear about.

Lakeville, MN

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