“New figures show foreclosures in the U.S. are up about 35-percent from a year ago,” Matt Lauer kicked off an April 20 segment of “Today” that encouraged homeowners - even those financially comfortable - to simply walk away. “And a growing reason why are people who simply choose to walk away from their mortgage even when they can afford it.”
I wish there were a way in which banks, etc could sue Matt Lauer for offering advice like this.
For what purpose? The loan contract states that in the event the homeowner doesn't pay the loan, the bank gets the house. The bank agreed to that up front. That the bank doesn't want the house now because they loaned too much money on an overvalued asset doesn't suddenly make them the victim here.
I wonder how many strategic defaults are simply the result of realistic forecasts that the borrowers may not be able to afford the house for the mid or long term.