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Here’s When You Should Walk Away From Your Mortgage
But there’s one more option that might make sense under the right circumstances: Walk away and default on your mortgage. A “strategic default” on your mortgage is simple: You stop making ...
Booth School of Business6mon
Why Do Borrowers Default on Mortgages? Evidence from High-Frequency Data
There are two prevailing theories of borrower default: strategic default -- when debt is too high relative to the value of the house -- and ability-to-pay -- when payments are too high relative to ...
Rochester Institute of Technology5y
College of Liberal Arts
“Group Lending and Individual Lending with Strategic Default”, Journal of Development Economics 91 (2010), 348-363 Bharat Bhole and Jeffrey Wagner. “Punitive Damages and Recklessness Requirement with ...