Strategic defaults are here to stay: It’s estimated that at least 1 million homeowners who can afford to pay their mortgage chose to simply walk away last year, according to CBS and 60 Minutes.
After doing the math and watching property values shrink in some instances to less than half of what’s owed on a mortgage, homeowners are opting to rid their underwater property and start fresh.
According to 60 Minutes, more than 11 million homeowners across the country are underwater, and it’s estimated that number could double in the next year.
This means nearly half of all American mortgage holders will owe more on their homes than those homes are currently worth.
Oppenheim Law has presented the theory of strategic default in our monthly Florida Foreclosure Defense Workshops and also with FOX News WSVN and CBS 4 News. Check out the videos below.
“We’ve been through an event that none of us have ever experienced in this country since the Depression,” David Stevens, the commissioner of the Federal Housing Administration, told Morley Safer and 60 Minutes.
Check out the entire 60 Minutes strategic default segment below and share your thoughts in the comments section.