The idea behind a strategic default is, if you owe more money then your house is worth, then just walk away. This works well with people who can rebuild their credit, and who can afford to walk away from their investment. But for people who take pride in owning a house, pride in paying off their debts, pride in owning property, strategic default is not an option.
Who do those homeowners think they are they can just walk away from a loan because their house is worth less today then it was worth last year? Lets compare the “walk away” attitude to the rest of life.
Buying a car or truck – Just because your car value drops, does that mean that you stop paying the note? From the time I bought my Toyota truck, to the time that I paid it off, it had lost about 1/2 – 1/3 of its value. But I still paid it off. If we compare a housing strategic default to a car/truck, then I should have stopped paying on my truck long before I had it paid off.
A totally unrelated video about the Maxpedition Noatak