http://www.bizjournals.com/southflorida/stories/2009/06/22/daily72.html The report finds that 17 percent of households would default, even if they can afford to pay their mortgage, when the equity shortfall reaches 50 percent of the value of the house People under the age of 35 and over the age of 65 were less likely to say it was morally wrong to default compared to middle-aged respondents.... [more]
http://www.bizjournals.com/southflorida/stories/2009/06/22/daily72.html
The report finds that 17 percent of households would default, even if they can afford to pay their mortgage, when the equity shortfall reaches 50 percent of the value of the house
People under the age of 35 and over the age of 65 were less likely to say it was morally wrong to default compared to middle-aged respondents.
People with higher education (eight percentage points) and African-Americans (14 percentage points) are less likely to think it is morally wrong to default, whereas respondents with a higher income are more likely to think it is morally wrong.
Default is considered less morally wrong in the U.S. Northeast (six percentage points) and West (8 1/2 percentage points).
There was little difference in the moral view of strategic default among Republicans and Democrats, but Independents were less likely to say defaulting is immoral.
Respondents who supported government intervention to help homeowners
were 12 percentage points less likely to say strategic default is immoral.
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The researchers found that homeowners start to default once their negative equity passes 10% of the home’s value. After that, they “walk away massively” after decreases of 15%. About 17% of households would default — even if they could pay the mortgage — when the equity shortfall hits 50% of the house’s value, they found.
"The researchers found that homeowners start to default once their negative equity passes 10% of the home’s value. After that, they “walk away massively” after decreases of 15%. About 17% of households would default — even if they could pay the mortgage — when the equity shortfall hits 50% of the house’s value, they found."
What is their idea of "massively" if it's only 17% at 50% off?
http://blogs.wsj.com/economics/2009/06/26/when-is-it-cheaper-to-ditch-a-home-than-pay/
The researchers found that homeowners start to default once their negative equity passes 10% of the home’s value. After that, they “walk away massively” after decreases of 15%. About 17% of households would default — even if they could pay the mortgage — when the equity shortfall hits 50% of the house’s value, they found.
http://www.financialtrustindex.org/images/Guiso_Sapienza_Zingales_StrategicDefault.pdf
"The researchers found that homeowners start to default once their negative equity passes 10% of the home’s value. After that, they “walk away massively” after decreases of 15%. About 17% of households would default — even if they could pay the mortgage — when the equity shortfall hits 50% of the house’s value, they found."
What is their idea of "massively" if it's only 17% at 50% off?