Nationwide, homeowners have found themselves in a home that they owe more on the mortgage than the current market value of the property, and are not sure how long it’s going to take to actually see equity in their property again, at least not in the near future.

Because of this, many economists are now concerned about something called “Strategic Defaults,” which is basically homeowners that feel that it doesn’t make financial sense to keep their home anymore and are now considering a short sale or just letting it go into foreclosure. Lenders are now seeing a lot of cases where the homeowners are choosing to be late on their mortgage, even though they can afford the mortgage. [Read more...]