A Strategic Default is when a borrower decides to stop paying a mortgage even though they may still be able to afford the payment. When the value of a property has fallen far below the mortgage debt and recovery of the equity lost is expected to take years, a borrower may elect to default based on the mortgage contract.
Please keep the flaming to a minimum. thanks!
I have been doing some research on this topic, and I know this is common in Phoenix. I bought my house in 2005 for 138,000, equity loan out in 2007 for $25,000 and refinanced in 2009 for 172,000. Similar houses in my complex are selling for 40-45000. I pay $1200 a month.
I was curious how many AZ people have gone this route/Strategic Default? How many of you rent your house from a private owner/realtor? Issues? I appreciate the info, thanks!