A new survey shows homeowners are open to strategic default. According to the survey, a large number of property owners see strategic default as a good option if their home continues to depreciate. Close to half the homeowners who participated in the online poll say they would walk away from their mortgage obligations if home values continue to fall. The survey was conducted online by Housing Predictor with 1,000 participants.
The Housing Predictor survey showed almost half of those surveyed would stop paying their mortgage payments even if they could afford it. Many of them believe it is best to get out from under the sinking investment. The numbers of those who would strategically default on their mortgage have risen sharply over the past year.
Other studies by the Mortgage Banker Association show that the vast media coverage that has been dedicated to the financial crises has made more homeowners aware of their equity position. Therefore, those who owe a great deal more on their mortgage than their home is worth are just walking away.
So, what would happen if you strategically default on your mortgage? You lose your home of course. The mortgage lender will take possession of your home and you will be left with bad credit from foreclosure. You should talk to a financial specialist before you consider strategically defaulting on your loan.