• Call/Text: (813) 784-7744
    • Send Me an Email

The Tampa Real Estate InsiderThe Tampa Real Estate Insider

South Tampa Realtor

  • Menu
  • Home
  • Meet Rae
  • Search
    • Advanced Search
    • Map Search
    • Listing ID Search
    • Address Search
    • Browse by City
    • My Account
  • Buyers
    • Buying With Me
    • Featured Properties
    • Mortgage Calculator
    • My Listing Manager
  • Sellers
    • Selling With Me
    • Sold Portfolio
    • FREE Home Valuation
  • Communities
    • Channelside District
    • Downtown Tampa
    • South Tampa
    • Seminole Heights | Tampa Heights
    • Gulf Beach Area | St. Petersburg | Clearwater
    • Westshore Marina District
    • Downtown St. Pete
    • Cheval Golf Community
  • TREI Blog
  • Get in Touch
  • Rave Reviews

60 Minutes News Story-What is Strategic Mortgage Default?

Strategic Default: Walking Away from Mortgages – CBSNews  

A million Americans who could afford to pay their mortgages on homes `underwater` walked away instead. Morley Safer reports.  

(CBS) Despite some indications that the economy is recovering, the housing market remains a disaster area. Currently, about seven million homeowners are behind on their mortgages and that number is only getting worse.   

Banks, with the help of the government, are offering some relief to homeowners who’ve lost jobs and just can’t meet their payments. 

 

But there’s a growing number of homeowner’s who can pay but are simply walking away from houses that are now worth as little as half of what they paid for them.  

It’s called “strategic default.” People have done the math and decided making those monthly payments is just throwing money away, leaving the mortgage holders – the banks – as zookeepers of an ever-growing parade of white elephants.  

In the past year it is estimated that at least a million Americans who can afford to stay in their homes simply walked away.   

This 60 minutes interview is consistent with our local Tampa Real Estate market conditions here in Florida where almost 50% of homeowners are delinquent on their mortgages.  

What was once considered immoral is now becoming commonplace, and creating a domino effect throughout the U.S.  Homeowner’s think paying on a home that is worth half of what they originally purchased it for is throwing money away.  

I read an article that compared a mortgage promissory note to a cell phone contract.  I’m not sure this is a fair comparison, however it is an interesting point.  

People break contracts all the time.  When you first sign up with a cell phone company you agree to pay a price for the service you sign up for. Then another company comes out with the same plan for half as much as what you are paying.  

How many  people do you know that have switched cell phone companies?  What is the morally responsible thing to do? 

See also: The Short Sale Process  

 

Posted in: Financing and Mortgage News Tagged: Financing and Mortgage News, Foreclosure Statistics Tampa

Post navigation

« Large Increase of Sales Showing Signs of “Bottomed Out” Tampa Housing Market
The Connection Between Baseball and Real Estate-Tampa Scores BIG! »

Search Our Blog

Search for:

Browse by Category

Browse by Topic

Best Neighborhoods in Tampa Best Places to buy a home buyers market tips Buying a Home buying real estate in tampa Channelside Condos For Sale Choosing the Right Realtor Condo Market News Condo Market Update Tampa current housing market in tampa florida Downtown Tampa Condos and Lofts Downtown Tampa Updates Financing and Mortgage News First Time Home Buyers First Time Home Buyer Tax Credit First Time Home Buying Advice Foreclosure Statistics Tampa FL Historical Neighborhoods-Tampa homestead tax exemption How to sell as short sale investing in condos Investing In Real Estate Luxury Home Communities new construction tampa property tax update Real Estate Investing Tampa real estate market tampa real estate news Relocating to Tampa sales statistics Selling Your Home Short Sale Process Tampa Short Sale Realtors Tampa South Tampa Real Estate Tampa Housing Market Tampa Real Estate Tampa Real Estate Market Tampa Real Estate News Tampa Realtors Tampa Relocation Guide Things to Do in Tampa Tips for Listing your home Tips for Sellers Top tampa realtors When is a good time to buy?

Explore Communities

  • Channelside District
  • Downtown Tampa
  • South Tampa
  • Seminole Heights | Tampa Heights
  • Gulf Beach Area | St. Petersburg | Clearwater
  • Westshore Marina District
  • Downtown St. Pete
  • Cheval Golf Community

Recent Posts

  • Dana Shores | Waterfront Community in Tampa Close to The Tampa Airport
    Dana Shores | Waterfront Community in Tampa Close to The Tampa Airport
    15 hours ago
  • Why Use a Buyer’s Real Estate Agent Instead of a Listing Agent? Tampa, Fl
    Why Use a Buyer’s Real Estate Agent Instead of a Listing Agent? Tampa, Fl
    1 day ago
  • Tampa Florida Extended Weather Forecast
    Tampa Florida Extended Weather Forecast
    2 days ago
  • Local Cultural and Social Events in Tampa
    Local Cultural and Social Events in Tampa
    2 days ago

Rae Anna Conforti

  • Call or Text Me

    (813) 784-7744

  • Send Me an Email

    Ready to Help

  • 1001 S. MacDill Ave

    Tampa, FL 33629

© 2021 Tampa Real Estate Insider | All Rights Reserved

Agent Reputation – Real Estate Website Design

Privacy Policy | DMCA | Sitemap