The Real Deal Miami

More and more strategic defaults

February 28, 2011 10:18AM

For a couple with a pair of six-figure salaries and a successful tech
company, making the $5,200-per-month payments on their mortgage wasn’t a
struggle. And yet, they decided to enter foreclosure on their own.
Looking at the numbers, with $525,000 outstanding on a first mortgage
and $245,000 on a second, both on a home worth $319,000, it turned out
strategic default was the best course of action. It’s also something
more and more are turning to — whether they can make payments or not.
“It felt like such an awful thing to do,” the woman in the couple said,
speaking on condition of anonymity. “I got a car loan at 14 and paid
$35 a week until I paid it off when I was 16.” [Palm
Beach Post]