Why would some people choose strategic default on their mortgage?
By kingparker
@kingparker (9673)
United States
April 9, 2012 8:42pm CST
I heard people discuss about strategic default on their mortgage, and I just don't fully understand why would some people rather choose to go this route. I knew the recent market price for the house market just not so optimistic, and you may even lose a lot of money if you bought your house at the highest price when it was at the good time, and now, the market price just plummeted down to the cliff. Now, maybe your mortgage balance is more than the market price of your house. Would a strategic default really help? How does it work out though? You may lose more than a 100 points on your credit rating once you stop paying for your mortgage even though you have the money to pay for it.
1 person likes this
2 responses
@3SnuggleBunnies (16374)
• United States
10 Apr 12
I've not heard anyone strategically defaulting on their home. I've heard of people defaulting because they can't afford it, job loss, value has dropped substantially & they are upside down, and of course if someone is struggling to get by and their house is falling appart.
@marty3888 (2355)
• Acme, Michigan
10 Apr 12
I 100& agrree with you. Yes, a house is an investment, but we bought our house to live in it, not to fix it up and sell it so we could either make money or buy a bigger one. I think alot of people are doing it just for the principle of the thing. But I really don't know what they're accomplishing.
