The Real Deal Miami

Strategic defaults make up one-fifth of mortgage delinquencies: report

June 28, 2010 02:30PM

Nearly one-fifth of all mortgage delinquencies during the second quarter of 2009 came from strategic defaults, according to a market report from Experian-Oliver Wyman, released today. That figure actually represents a reprieve in strategic defaults since the fourth quarter of 2008, “a break in the upward trend,” the report says, despite continued high levels. “After a seasonal reduction in both [delinquencies and strategic defaults] from Q4 2008 to Q1 2009, the Q2 numbers then declined further, breaking the historical trend of quarter-over-quarter increases; however, we will need to analyze the data from Q3 and Q4 to validate this,” said Peter Carroll, a partner at Oliver Wyman. [Palm Beach Post]