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Loan Modification

: The Truth About Mortgage.com

Strategic Default Driven by Future Home Prices, Default Costs

By scot184

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Borrowers thinking about walking away from their homes voluntarily don’t necessarily give up because the mortgage balance exceeds the value of their homes, according to an Economic Letter titled “Underwater Mortgages,” from the Federal Reserve Bank of San Francisco. The authors, John Krainer and Stephen LeRoy, argue that the decision seems to be heavily impacted by [...]

Full post as published by The Truth About Mortgage.com on October 19, 2010 (boomark / email).

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