Tag Archives: Strategic Defaults

Strategic default is moral imperative to prevent future housing bubbles

Underwater loan owners with payments exceeding rent have a moral imperitive to strategically default to provide deterence for banks to inflate future housing bubbles. Continue reading

Posted in Fresh Perspectives | Tagged strategic default, Strategic Defaults, Strategic Foreclosure | Leave a comment

4 Ways The Government May Try to Stabilize the Housing Market

The only reason why all of these “extend and pretend” gimmicks are needed is that, with home prices at their current levels, there simply isn’t enough demand. If Uncle Sam would get out of the way and let prices find their bottom, then, by definition, there would be appropriate demand and the housing market would be in harmony.
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Posted in Fresh Perspectives, Home Economics, The Daily Hotsheet | Tagged Foreclosures, Home Prices, Obama, Principal Reduction, Shadow Inventory, Strategic Defaults | 1 Comment

5 Things You Need To Know: Option-Arm Debt Forgiveness

Option-Arm mortgages were some of the most dangerous loans made during the housing frenzy. Now, some of these speculative, risky buyers are being rewarded with principal reductions.
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Posted in Economic News, Fresh Perspectives, Real Estate Data, The Daily Hotsheet | Tagged Foreclosures, Negative Amortization, Option-Arm Loans, Principal Reduction, Strategic Defaults | 10 Comments

3 Things You Need to Know About Shadow Inventory

There is a lot of confusion about shadow inventory, with estimates ranging from under 2 million homes up to 7 million. Today, we’ll break down exactly what shadow inventory is, what it means to you, and how strategic defaults could make it grow. Continue reading

Posted in Foreclosures and Short Sales, Real Estate Data, The Daily Hotsheet | Tagged Foreclosures, Shadow Inventory, Strategic Defaults | 2 Comments

Consequences of strategic default not as bad as you think

Lenders want to keep the millions who would benefit from strategic default in a state of fear and confusion to compel the borrowers to keep paying. They would prefer to publicly endorse borrowers most macabre fantasies of strategic default while quietly soliciting new customers behind the scenes. Prior to the blog era, they might have been successful. Continue reading

Posted in Foreclosures and Short Sales, Fresh Perspectives, Home Economics, Strategic Defaults, What You Need To Know About Buying and Selling Real Estate | Tagged Credit Scores, Foreclosures, Short Sales, Strategic Defaults, Walking Away | 1 Comment