In a recent survey by the Palm Beach Post in Palm Beach County Florida, strategic default is on the rise. A local reporter even had some feedback from an anomymos and willing individual who explained that when she bought her waterfront home in 2004 for $583,000 everything was fine. She later decided to strategically default even though she can continue making the $5,200 mortgage payment. This news should not come suprising to some of us.
75% of homeowner’s in Palm Beach County who are upside down in there home by 100% of there current value are strategically defaulting of the total 4,200 people surveyed. Homeowners are not even looking to short sale the property or even modify their mortgage. Upside down is upside explained another anonymos individual. Only time will tell what the net effect will be in Palm Beach County on strategic default. In your market area, has strategic default played a part in the real estate crisis?