The Real Deal Miami

Homeowners making “strategic defaults,” even if they can pay

March 23, 2010 09:22AM

Many homeowners are now choosing foreclosure rather than making
payments, even if they can afford them, making a so-called “strategic
default.” With nearly one-fourth of U.S. mortgages underwater, many are
deciding that making payments on a home that may never recover the
value of the mortgage looks less and less practical. The decision to
choose foreclosures, even when the money is there to make payments,
could be due partially to emotional reasons — from anger at banks to
feelings of betrayal, according to a report in the Sun Sentinel. [Sun Sentinel]