Quote of the day

The social stigma of defaulting on a home loan is fading quickly. In Miami,
• Property values have plummeted by an average of 50% • In Q4 2008, strategic defaults were 28% of defaults (Miami-Dade and Broward Counties) • Same locations, Q4 2006: Strategic defaults were 20%; • In September ‘09, homeowners owed $62.7 billion more than their homes were worth (CoreLogic) • Broward County 2006 purchases had a median negative equity = $75,000 • Miami-Dade 2006 purchases had a median negative equity = $63,000, • Nationally, estimated 588,000 strategically defaulted in 2008 (Experian) • Strategic defaulters with good credit scores (who remain current on other credit lines) can rehabilitate their FICO scores within 24 months after foreclosure.
Hat tip to the Big Picture, and the Miami Herald.

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One thought on “Quote of the day

  1. Josh

    I don’t think there ever was a “social stigma” associated with strategic defaults. There just weren’t many strategic defaults until housing prices dropped for the first time.


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