Rich Strategic Defaulters

1 in 7 “rich” homeowners (homeowners that owe $1M or more on their homes) are deliquent vs 1 in 12 for the “normal” homeowner (Mortgages less than $1M).  Because the difference is so high between “rich” and ‘middle class” homeowners, CoreLogic’s semor economist states that the rich homeowner is missing payments willingly.

Strategic default seems to be increasing tremendously as homeowners are realizing that their homes are so far “underwater” that they will not have equity in their home for years.  If your home was $400k in the red, would you give your home back to the bank?

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