Strategic Defaulters: Still No Reason Why Some Stop Paying Their Mortgages

Foreclousure rates and mortgages
Foreclousure rates and mortgages

A new study sheds additional light on the issue of "strategic defaults" in America, offering further insights into homeowners who are statistically more likely to make a calculated decision to stop paying their mortgages.

Currently, about 25% of homeowners nationwide are underwater – meaning they owe more on their homes than the properties are worth. A strategic default occurs when a homeowner decides to stop paying his or her mortgage, even while that individual generally keeps up with other payments, such as credit card bills or an auto loan.

This latest study on strategic defaults comes from Fair Isaac Corp., creator of the FICO credit score. It adds to a growing body of research that aims to help banks and other lenders predict which consumers are most likely to walk away from homes that are underwater.