g Text Version
Beauty & Self
Books & Music
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
News & Politics
Religion & Spirituality
Travel & Culture
TV & Movies

Bored? Games!
Take a Quiz
Rate My Photo

Autism Spectrum Disorders
Mental Health
Blogs / Social Networking
Kidney Disease
Today in History

All times in EST

Full Schedule
g Home Ownership Site

BellaOnline's Home Ownership Editor


Strategic Defaulters on the Rise

Guest Author - Rose Mary

When real estate is doing well and home equity is on the rise, home owners would never think about not paying their mortgage. After all, by doing so, a home owner is creating a huge blemish on their credit. The current real estate trends have changed the way people look at their mortgage bill and whether they should pay it or not. There is a lot of evidence and news about home owners who have opted to stop paying their mortgage bills.

This group of home owners are called "strategic defaulters". They are those who have decided, for one reason or another, to stop paying their mortgage. Many have chosen to walk away and let the bank take back ownership of the home.

There are several reasons why people do this. Many home owners paid much more for their home several years back than what the house is worth today. If the home has lost so much value in the current real estate market, a homeowner is no longer gaining equity in the home each month that the mortgage is paid. They feel that it will take too long for them to recoup the money that has been lost due to declining home values. Therefore, instead of holding on, they decide to walk away and figure that they will try to buy another home in a reasonable amount of time.

When this is the case, many home owners feel that they are just renting their home from the bank. They continue to make current payments on all of their other bills except the mortgage. If they try to sell the home, they will owe the bank the difference between the sales price and the outstanding mortgage. If they stop paying the mortgage, they can possibly modify their loan with the bank. Others are opting to just walk and leave the home to the bank.

Congress has suggested that these strategic defaulters be discouraged from this behavior by not allowing them to be approved for an FHA mortgage in the future. Although many may think that this is wrong considering the way the whole real estate industry broke down and the banks involvement in it, others who continue to struggle to make their mortgage payments are the ones who feel punished. Morally they are doing what they feel is the right thing but yet they are turned away from being helped by their lender.

Each day has a new turn of events in the real estate and mortgage industry. It will be interesting to see what develops with strategic defaulters and what the next big event will be.
This site needs an editor - click to learn more!

Add Strategic+Defaulters+on+the+Rise to Twitter Add Strategic+Defaulters+on+the+Rise to Facebook Add Strategic+Defaulters+on+the+Rise to MySpace Add Strategic+Defaulters+on+the+Rise to Del.icio.us Digg Strategic+Defaulters+on+the+Rise Add Strategic+Defaulters+on+the+Rise to Yahoo My Web Add Strategic+Defaulters+on+the+Rise to Google Bookmarks Add Strategic+Defaulters+on+the+Rise to Stumbleupon Add Strategic+Defaulters+on+the+Rise to Reddit

RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map

For FREE email updates, subscribe to the Home Ownership Newsletter

Past Issues

Printer Friendly
tell friend
Tell a Friend
Email Editor

Content copyright © 2015 by Rose Mary. All rights reserved.
This content was written by Rose Mary. If you wish to use this content in any manner, you need written permission. Contact BellaOnline Administration for details.


g features
Homeownership is a Responsibility

Is a Refinance Right For You?

Should You Own a Home

Archives | Site Map


Past Issues

Less than Monthly

BellaOnline on Facebook

| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2015 Minerva WebWorks LLC. All rights reserved.

BellaOnline Editor