Socially acceptable “strategic defaults” The ticking time Bomb!
By Marc Reno
(Bauer-Reno & Associates Real Estate LLC)
We saw this coming a mile away....socially acceptable "strategic defaults." For purposes of my blog I am suggesting that "strategic default" means a homeowner that can make his or her payments but chooses not to for one reason or another. (Note: this excludes legitimate hardships like job loss or health issues for example) Many owners think, "I'll walk away, my credit will get dinged up a bit, I will keep my credit clean and be able to buy again in a few years". But we should look at the real long term affects of default. First, how long will it be before the borrower can buy again? The numbers change depending on who you ask and when, but a common response is 5 to 7 years from date of default to get any kind of respectable mortgage loan. Unfortunately (or fortunately depending on yo...