If it’s a “business decision” to walk away, then it must also be a “business decision” for taxpayers to try to keep these people paying.
After all, 60% of all mortgages are ultimately owned by the US Taxpayers (because we own Fannie and Freddie now). Assuming that strategic defaults are somewhat evenly distributed among the various mortgage owners (Fannie/Freddie, banks, insurance companies, etc.) then we as taxpayers are going to fund 60% of the losses associated with strategic defaults.
So, while you’re rooting for the strategic defaulters to make their “business decision” – which is perfectly o.k. – just remember that you’re on the hook for somewhere around 60% of the costs associated with that decision.
People are gonna do what they’re gonna do. But don’t forget who’s paying for it.
