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Wednesday, September 15, 2010

Pew: 36% of public approves strategic default as an option

According to a Pew Research Center survey, 36% of Americans said it is acceptable to stop making mortgage payments, even if it is affordable.
Pew surveyed more than 2,900 adults on the subject of strategic default. More than one-in-five, 21%, said they owe more on their mortgage than their home is worth. These underwater borrowers are at the highest risk of strategically defaulting, because they lack the incentive to make the payments
But the figure is different for the people that own homes
Nearly half of homeowners said the value of their home declined during the recession, but these borrowers are not more tolerant of strategic default than those in positive equity. According to Pew, 18% of underwater homeowners said it's acceptable to walk away, while 17% of respondents still with equity in their home approved of the practice.

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