In a recent study from the Federal Reserve Board has answered the question of "at what point do borrowers who can make their mortgage payment decide to stop making that payment?" This newly popular practice and its accompanying term, strategic default, have been one of the issues at the center of the current foreclosure crisis. The study found that a median borrower decides to strategically default when the amount they owe on their home exceeds the value of their home by 62%.
The Federal Reserve Board stated that in states where lenders do not have recourse to borrowers for deficiencies homeowners will strategically default when their homes are less underwater, while homeowners in states like Florida, where lenders do have recourse to pursue borrowers assets for deficiencies, don't strategically default until they are substantially underwater.
If your Florida home is underwater and you are considering strategic default there are other options to consider which may better serve your interests in the long term. Contact a Florida Foreclosure Lawyer today to discuss alternatives to strategic default, several of which may be able to save your home
