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.