Credit Bureau Experian Reports 355,000 Defaulted on their Mortgage Yet Stayed Current on Other Debts
Posted on | July 26, 2010 | No Comments
The credit bureau Experian reports that in the first half of 2009, 355,000 Americans had the ability to pay their mortgage but decided to walk away. The practice known as strategically defaulting has become very common in America as it helps households free up cash to make other purchases.
Most of these strategic defaults are coming in bubble states such as California, Nevada, Arizona and Florida so it is safe to assume that many of these households are finding a rental very cheap which is cutting their expenses drastically. In more words or less, these individuals feel as if they are giving themselves a monthly pay raise.
The number of strategic defaults was up over 58% during the first part of 2009 compared to the first half of 2008. At the present time there are still 11 million homeowners who are underwater in their home, meaning they owe more than their home is worth. This is a very strong argument to walk away through the practice of a strategic default. Unfortunately, for these borrowers, this is a short term solution to a long term problem.
Author: Heather Best
Tags: credit bureau experian > defaulted mortgages > experian credit bureau > mortgage debt > mortgage debt default > mortgage default > mortgage default experian
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