We’ve said it for years and its worth repeating once more: at the behest of the banks, employed underwater homeowners are left with no other choice than a strategic default.
A strategic default allows a homeowner to both move on to another residence and increase his family’s standard of living – things very American to do.
Until lenders muscle up or are forced to report their mortgage losses,
the real estate market will continue to heave under the disproportionate weight of delinquencies, foreclosures and REO inventory. Until then, lenders will be too suppressed with foreclosure-related activities and solvency issues to lend.
A strategic default allows a homeowner to both move on to another residence and increase his family’s standard of living – things very American to do.
Until lenders muscle up or are forced to report their mortgage losses,
the real estate market will continue to heave under the disproportionate weight of delinquencies, foreclosures and REO inventory. Until then, lenders will be too suppressed with foreclosure-related activities and solvency issues to lend.
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