It was just a matter of time – from The Atlantic: The Wall Street Journal had a piece the other day on corporations that choose to walk away from their mortgages. It’s full of self-serving quotes about why corporations that have plenty of cash just have to stiff the folks who were foolish enough to [...]
No doubt about it, we’re in a fix as far as housing goes. While some short sighted analysts are pumping up recent data alleging a growth in home sales, the fact of the matter is that in raw numbers of houses sold, we’re clearly in a housing Depression. Prices continue to drop, foreclosures continue at [...]
From the New York Times: …The CoreLogic data suggest that the rich do not seem to have concerns about the civic good uppermost in their mind, especially when it comes to investment and second homes. Nor do they appear to be particularly worried about being sued by their lender or frozen out of future loans [...]
“Strategic default” happens when a borrower can make his mortgage payments, but chooses not to – he “walks away” from his house and allows the bank to foreclose. This must be strictly differentiated from those who default because of lost income. The issue has come to the fore of late because of the collapse of [...]