Mortgage Walk-Away Not Favored, Even by Borrowers in Need


You probably won't be surprised to learn that the key reasons people just walk away from their homes involve job loss and a significant drop in home value. What might surprise you is how long people hold onto their homes before they decide to walk away.

The Federal Reserve found in a recent study that most strategic defaulters don't walk away from their home until the equity in their home is negative 62 percent of the home's value.