Why You Haven’t Strategically Defaulted Yet  Last week The
Consumerist had a post telling readers to Go Ahead,
Strategically Default On Your Underwater Mortgage. This was
based, more or less, on a paper from a law professor at  the
University of Arizona which addressed the legitimate conundrum
of why strategic defaults are not more common.  A strategic
default on a mortgage is when a borrower can make the payments
Upsidedown House attrb Stopmangohome but chooses not to. In
other words, the borrower hands the keys over to the lender and
walks away. It is important to remember that, despite much play
in the media and academia, this is still a rather exotic
maneuver. In order for a borrower to even begin considering such
a move two things need to be true.  First, obviously, the house
has to be worth a lot less than the outstanding mortgage
balance. Or, in current slang, it needs to be substantially
underwater. Swapping ownership of the house for extinguishing
the debt is, essentially, selling the house for what