Interesting Takeaways from "Should A Borrower With An Underwater Mortgage Strategically Default?" by Evan Nemeroff
- 31% (15.3 million) of U.S. homeowners who have a mortgage underwater
- nearly three-quarters have properties that are 40% below their buying cost
- When homeowners were asked in the survey why they would not choose to strategically default, 37% cited moral reasons, while 35% indicated it didn’t make sense since they intend to live in that house for an extended period of time.
- The most common reason for avoiding strategic default cited by homeowners was that it is a moral issue.
- Even though one out of every three homeowners with a mortgage is underwater today, Zillow said 90.8% of these homeowners are current on their mortgage and