Will Strategic Defaults Increase?

Have you considered strategically defaulting on your mortgage? According to the article below by DSNews.com, there are many homeowners who are now more seriously considering stopping their mortgage payments. What’s changed their mind? The presidential election. Another reason for the proposed future raise in strategic defaults is the soon-to-expire Mortgage Debt Relief Act of 2007. Read more about this topic below:

“A foreclosure agency suggested borrowers may be more encouraged to strategically default due to the expectation that little will change over the next four years surrounding policies on housing and the economy.

Strategic default occurs when a borrower stops making mortgage payments on a property he or she can afford. Typically, strategic defaulters are also underwater. In a recent survey of YouWalkAway.com customers, 47 percent said they believe the Obama administration had no effect on the foreclosure crisis.

About 31 percent believe the administration had a negative effect, and 22 percent of respondents said they think the Obama administration had a positive effect on the foreclosure crisis, the agency reported.

Due to the perception that housing issues are not a priority for the current administration, YouWalkAway said, ‘underwater homeowners who were previously undecided about whether or not they should strategically default are choosing to do so given the election results’…”

Read more of this article by going to DSNews.com.

Are you facing foreclosure? Curious about short selling your home? Please contact me–I would appreciate the opportunity to see if I can help your situation!

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