The Research Institute for Housing America recently put together a 62 page special report on strategic default in the context of a social network. The study likens the current housing market of strategic default to an epidemic spread like a disease via social media networking sites.
Susceptibility to normative influence, or SNI, "measures how easily people can have their belief changed as it relates to thier willingness to strategically default at various stages of being underewater in their mortgage." SNI is considered the most influential social network variable. Social connectivity is next, followed by what they call Mavenism. Although third in influence, its reach cannot be ignored.
Models were made to study the process of social interactions and how they affect independent decisions such as the decision to strategically default. The study likens this advocacy to a disease that spreads quickly through a society. With SNI a person's opinion on strategic default can be changed, thus causing the disease to spread rapidly.
Mavens, on the other hand, are those who have larger social network reach and who are better able to spread the disease simply because they come into contact with greater numbers of people. Fragile markets are the most suceptible, thus causing a market collapse. Are we as realtors aiding in the spread of the disease? Follow the link below to read and print the report. It is very enlightening.
http://www.housingamerica.org/RIHA/RIHA/Publications/78456_10923_Research_RIHA_Default_Report.pdf
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