32% Say OK to Walk Away, 36% Say OK to Poor Credit - Oh Boy

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage

Thirty-two percent of Americans surveyed say home owners should be able to strategically default on their mortgages without facing any consequences for doing so, according to data compiled by JZ Analytics. What’s more alarming, 13 percent say they would likely strategic default and another 17 percent say they know others who have already walked away from their mortgage obligations. Thirty-six percent of Americans surveyed also said they believe it’s acceptable to have a poor credit score.

"What jumped out is how many Americans feel it is acceptable for home owners to walk away from a mortgage and go into foreclosure,” says John Zogby, a senior analyst at JZ Analytics and creator of the Zogby Poll. “If Americans carry on with that mindset, it will continue to cause problems as the economy undergoes a slow recovery."

The mindset is a simple one to understand given the current environment and bloodbath of recent years. I speak to folks that have done and consider strategic default and it;'s the same line - "businesses do it all of the time" or "the banks could care less so why should I"?

One of the best articles I've read concerning this topic was written by a financial pro that decided to strategically default and how the result impacted his life. While I don't feel old at 51, I guess times have changed, morally this would really eat at me. Not to mention the destruction of your credit and potential for lenders to chase a deficiency judgment. But since 36% of those surveyed said poor credit isn't an issue....either this is a cash only group or one that has found another way to successfully survive.

From a pure business standpoint though, the idea of an owner saying "screw it" isn't hard to understand. Those of us in this industry see the disdain and combative stance of lenders even toward people trying to do the right thing. Despite all of the publicity surrounding the issues of underwater owner and attempts to "reform" how they are handled by the banks, it doesn't appear that much has changed over the years. Washington made the banks whole during the big bailout, but what's their motivation to work with these owners.....? That's right - nothing.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
Georgia Fulton County
Groups:
"Whacked"!!!
The Lounge at Active Rain
Realtors®
Posts to Localism
BananaTude
Tags:
foreclosures in atlanta
strategic default

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the balloons to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
686,157
Gene Mundt
www.genemundt.com - Joliet, IL
Mortgage Lender - Chicago/Chicagoland Mortgages

Hank:  I guess I'm in the same generation as you.  The guilt alone would just about drive me crazy too.  Not sure what will turn attitudes around ..

Gene

Oct 11, 2012 12:11 PM #1
Ambassador
1,432,398
Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Phoenix Real Estate Agent, CRB, CRS 602-380-4886

Hank I am not going to judge folks for the choices they make. With over 60% of homeowners way underwater by upwards of 60%, it is their decision on how best to handle their families situation. 

Oct 11, 2012 12:56 PM #2
Rainmaker
123,176
Hank Miller
Atlanta Communities Real Estate Brokerage - Alpharetta, GA
Broker & Certified Appraiser

I don't think I'm trying to judge them, I'm more amazed (if that's the right word) that the idea of this has become more or less accepted - as has the idea that creditworthiness really doesn't matter.

Trust me - we've all seen how obscene these lenders can be and how purposefully combative; at some level it's understandable for an owner to just quit.

Oct 11, 2012 01:18 PM #3
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
123,176

Hank Miller

Broker & Certified Appraiser
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information