Tags: Zogby | Default | Mortgage | home

Zogby: 68 Million Say It’s OK to Default on Mortgage

Friday, 05 Oct 2012 07:53 AM

Some 68 million Americans feel homeowners should be allowed to strategically default on their mortgages without any consequences, a JZ Analytics survey finds.

A strategic default is when a homeowner, who has the ability to make a payment on a house that is not underwater, decides to walk away and let the house go into foreclosure.

The survey also found that 28 million Americans will likely strategically default on a mortgage, while 36 million know someone who has done just that.

Editor's Note:
Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

"Our research into the consumer opinion of the economic crisis of 2008 found alarming results," John Zogby, senior analyst at JZ Analytics and creator of the internationally renowned Zogby Poll, said in a statement.

"What jumped out is how many Americans feel it is acceptable for homeowners to walk away from a mortgage and go into foreclosure. If Americans carry on with that mindset, it will continue to cause problems as the economy undergoes a slow recovery."

Meanwhile, the housing sector saw some good news — the number of Americans who owe more on their mortgages than their homes are worth dropped in the second quarter thanks to recovering U.S. home prices and waning sales of bank-owned homes, The Associated Press reported, citing CoreLogic data.

Homes with underwater mortgages totaled 10.8 million, about 22 percent, down from 11.4 million properties, or 23.7 percent, in the first quarter, CoreLogic reported.

Separate data show home prices are rising as well.

The S&P/Case-Shiller home price index showed that home prices rose 1.6 percent in July from June in 20 cities.

"The news on home prices in this report confirm recent good news about housing," said David Blitzer of S&P Dow Jones Indices, according to the AFP newswire.

"Single family housing starts are well ahead of last year's pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing."

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

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