Strategic Default maybe on the decline?
It appears so:
“Overall, strategic defaults have stabilized as home prices flattened, and initial jobless claims declined,” analysts said. “A trend worth watching, no doubt, but we can comfortably say that strategic defaults are less than 30% of all defaults, and the pipeline of borrowers [delinquent more than 90 days] has even lesser strategic delinquencies.”
But don’t get cocky:
Currently, 42% of underwater borrowers remain current on their mortgage, according to the JPMorgan Chase analysts