My friends have done it. My colleagues have done it. Even my neighbors have done it.
During the years that preluded The Great Depression my great-great-grandfather was the president of a national bank which was failing. As a result of the pressure, he took his own life.
Today, I have a number of friends who will chat about the properties that they've "let go" (they never seem to use the word foreclose) as passively as they recount what they ate for lunch.
Is there something morally reprehensible about "2010: The Year Of Strategic Default" to anyone else? Or should we take a more pragmatic approach to passing judgement? And what about the author's comment that, "Defaulting strategically can entice more walk-aways by buying all the major items they may need in the near future, such as a car or even a house, right before they take a hike..."
You're telling me that an acquaintance of mine who purchased an almost million dollar house using a down payment that he swiped from re-financing his current place -- right before foreclosing on it -- is the wise one? True, his credit is subpar for a few years, but he doesn't care. Why would he? He has everything that he needs.
So should we all just view this sort of thing as a sound, strategic business decision?
Excuse me while I pick my jaw up from off the floor.
Keep in mind that we are not discussing foreclosure that is the result of job loss or tragedy. We're talking about "Strategic Default" specifically.
See Part 2 here.