Those Who Can Pay Their Mortgages Are Walking Away
Yep, that’s correct and it is strategic. The article talks about how negative equity hasn’t been addressed. That is true to an extent however the Hope for Homeowners loan was supposed to take care of this.
“The report found that homeowners often won’t default as long as negative equity doesn’t exceed 10% of the value of the home. However, 17% of households would default — even if they could afford their mortgage payments — when their equity shortfall reaches 50% of the value of their home, according to the paper. In numerous housing markets, home prices have suffered declines of more than 30%.”