I don’t understand all the fuss about ‘strategic defaults’ as homeowners walk away from mortgages that are 1000’s of dollars over the properties value. It’s just good business and exactly what smart companies do. There is no “moral obligation” to pay back a secured loan.The house is pledged as collateral for the loan. If it is returned to the lender in lieu of payment and does not cover the cost of the loan, then the lender made a mistake and will take a loss. Business 101.
A strategic default gets the ire
Of bankers who stepped in the mire.
The loan had been hedged
With collateral pledged.
If they need more they should have asked prior.