Prime Borrowers Are Defaulting Faster Than Subprime

That’s right and I know it is hard to believe but unfortunately a big driver of this is job losses.  Also, I would imagine many prime borrowers are making the decision whether to continue to pay on a property that they can afford but lost 30-40% in value especially in South Florida. 

You might not like what I am going to say but it is a financial decision.  Unfortunately many prime borrowers did the right thing and have lost so much value due to the bad decisions of others.  I don’t suggest anyone to do this but there are pros and cons of paying your mortgage and walking away.  That is a decision that each individual needs to make on their own. 

Hopefully the article is right that the subprime pain is in the rearview mirror.  I guess it makes sense since a lot of these individuals never could afford the property in general so they were much faster to fall behind and have already foreclosed.