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strategic default

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  • “Brent White, a University of Arizona law professor, notes that a family who bought a three-bedroom home in Salinas, Calif., at the market top in 2006, with no down payment (then a common-enough occurrence), could theoretically have to wait 60 years to recover their equity. On the other hand, if they walked, they could rent a similar house for a pittance of their monthly mortgage.

    There are two reasons why so-called strategic defaults have been considered antisocial and perhaps amoral.”

    The New York Times, Walk Away From Your Mortgage!, by Roger Lowenstein, January 3, 2010

    January 8, 2010