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“Not Paying the Mortgage, and Not Even Worrying.” That’s a recent headline describing the approach of some underwater homeowners to their mortgage problems.
An increasing number of borrowers who can afford their monthly payments have been opting to “strategically default” on their mortgage debt because the mortgage far exceeds what the home is worth. A recent report indicates that around 12 percent of all mortgage defaults fall into the “strategic” category. It’s even suggested that this attempted escape from mortgage debt is becoming socially acceptable.
For desperate homeowners convinced they are going to lose their home eventually no matter what they do, it may seem to make sense. It’s reported that the average borrower can be in foreclosure for 438 days before actually being evicted, up from 251 days two years ago. For the financially strapped, living mortgage-free and rent-free temporarily may seem like a sensible way out regardless of longer term consequences.
Read more: http://www.newjerseynewsroom.com/economy/escaping-mortgage-debt-in-new-jersey
