Two new studies that are beyond obvious and probably a waste of time, just came out. They say that record numbers of home owners are walking out on their mortgages even though they can still make payments.

Yep, seems that confidence in a rise in home values is shot. And people aren’t as scared of foreclosures as they used to be.

Yep, 31% of all foreclosures in March are apparently “strategic” and could have been avoided. The study credits this to the belief by homeowners that banks won’t pursue them if they default. At least, not like they used to.

Two more factors that would increase likelihood of a foreclosure:

1) If your neighbor had negative equity and received a partial forgiveness loan

2) If the homeowner finds a way to finance a new home

Can you think of any other reasons? Leave a comment and let me know.

Of course, fear of losing a good credit score is the main reason to avoid foreclosure. 74% of homeowners feel that way.

Of course Obama is trying to combat this by proposing lots of new housing initiatives. The most obvious is the principal write-down.
Morgan Stanley believes this might stem the rise of foreclosures.

But honestly folks, that’s just a band aid on the problem. The real answer needs to see the root of the problem.