Maybe Homeowners Wouldn't Strategically Default If Lenders Cooperated

Maybe Homeowners Wouldn't Strategically Default If Lenders Cooperated

There’s an interesting detail at the end of this New York Times article on borrowers who strategically default–that is, they choose to walk away from the home when its value is significantly less than the mortgage balance. It turns out that the homeowner mentioned at the start of the article applied last fall for a loan modification with Bank of America after his income level had dropped, and this was BofA’s response: “The lender came back a few weeks ago with a plan that added more restrictive terms while keeping the payments about the same. ‘That may have been the last straw,’ Mr. Koellmann said.” [More]

Homeowners With Good Credit Are More Likely To Strategically Default

Homeowners With Good Credit Are More Likely To Strategically Default

Here’s an interesting discovery about mortgage defaults from the LA Times: