Strategic Default: One of Four Nevada Foreclosures

Nearly one out of four foreclosures in Nevada involve home owners just walking away from their homes.  This is when the home owner makes a financial decision to walk away and is also known as strategic default.
There are numerous government programs designed to help people stay in their homes, but most of the programs have proven to be a dismal failure.  There is a "clear disconnect" between what federal and state assistance programs were offering and what struggling homeowners actually needed. For example, only 3 percent of those surveyed said they were helped by a state foreclosure mediation.

Read more here.


About rereno

Real estate investor
This entry was posted in Foreclosure, Nevada, Real Estate, Short Sales and tagged , , . Bookmark the permalink.

2 Responses to Strategic Default: One of Four Nevada Foreclosures

  1. Louis says:

    Even if so-called homeowners can make their monthly mortgage, many are choosing to NOT pay their mortgage. It is their right to do so. It is also the right of the lending institution(s) to take the asset back as collateral if the homeowner defaults.

    So I venture a guess that an onslaught of strategic defaults will become the norm as people stay in their homes, save money, and then use it to payoff and actually OWN a nice piece of property when the time is right.

    • rereno says:

      You could very likely be right.
      One thing though, this story on strategic defaulters suggests that the banks might act more quickly in these cases. That would reduce the available cash for the next house.

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