Strategic Default on Long Island’s East End / Hamptons?
October 4th, 2009 category: Real Estate News
For those seeking to sell or buy a home, it would be remiss to ignore the following article from Kenneth R. Harney…
People who default strategically and lose their houses appear to understand the consequences of what they’re doing. Piyush Tantia, an Oliver Wyman partner and a principal researcher on the study, said strategic defaulters “are clearly sophisticated,” based on the patterns of selective payments observable in their credit files. For example, they tend not to default on home equity lines of credit until after they bail out on their main mortgages, sometimes to draw down more cash on the equity line.
Strategic defaulters may know that their credit scores will be severely depressed by their mortgage abandonment, Tantia said, but they appear to look at it as a business decision: “Well, I’m $200,000 in the hole on my house, and yes, I’ll damage my credit,” he said of defaulters. But they see it as the most practical solution under the circumstances.
Read the entire article by clicking on the link below.
http://www.latimes.com/classified/realestate/news/la-fi-harney20-2009sep20,0,2560658.story
Our second home communities on the east end / hamptons of Long Island are more at risk for a strategic default than other locations- those finding a second home more difficult to afford are faced with difficult decisions.
As always, just a market gauge to keep in mind as you navigate these confusing times.
If you are looking for a home or bank owned foreclosure for sale on the North Fork / East End / Hamptons of Long Island, please fill out the form below.
To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.
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