Friday, April 30, 2010

More Homeowners Consider Strategic Defaults - Developments - WSJ

More Homeowners Consider Strategic Defaults - Developments -
WSJ: "More homeowners are willing to walk away from their homes voluntarily, according to new research released by the University of Chicago and Northwestern University. About 31% of foreclosures in March were considered “strategic defaults,” in which homeowners walk away when the value of a mortgage exceeds the house value — even if they can afford the mortgage. That’s up from 22% in March 2009."

Of course this is the day after I say in class that not as many strategic defaults as we would expect from a strictly economic/rational model.

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