Others have voluntarily left their residences — often due to underwater homes, or properties where the borrower owes more on the mortgage than the home is worth.
Walking away from a mortgage can be an attractive option for those who simply can’t keep up with their payments. If you can afford payments but choose not to, it’s known as a “strategic defaultâ€. Results of Fannie Mae’s National Housing Survey reveal that 27 percent of underwater homeowners say it’s okay to walk away from a mortgage if they were facing financial distress.
Is it the right strategy for you? Here are a few reasons you should consider strategic default, along with several reasons you shouldn’t’: