The Real Deal Miami

As home values decline, more strategic defaults emerge

January 27, 2010 12:34PM

As the deflation of housing values deepens, more homeowners are choosing to walk away from homes — and mortgages — rather than continue making payments. NBC Nightly News’ Diana Olick said that with home prices down around 30 percent from peak levels nationwide, an increasing number of homeowners are finding that these strategic defaults can help their bottom line. The trend is becoming more noticeable, with Web sites like YouWalkAway.com providing step-by-step advice on the process, Olick said, raising concerns about the stress that could be put on banks should more mortgage holders jump ship.