More homeowners are opting for 'strategic defaults' - latimes.com: "Time was when Americans would do almost anything to hang on to their homes. But that commitment appears to be fraying as more people fall behind on their loans while watching the banks and lenders that helped trigger the financial crisis return to prosperity.
Nearly one-quarter of U.S. mortgages, or about 11 million loans, are 'underwater,' i.e. the houses are worth less than the balance of their loans. While home values are regaining ground -- median prices rose 10% in Southern California last month to $275,000 compared with a year earlier -- they remain far below the July 2007 peak of $505,000.
Many homeowners are just coming to grips with the idea that prices will take years to reach the pre-crash peak: as long as 14 years in California, according to economist Chris Thornberg."
Fourteen years? For a baby boomer that is just way. Too. Long.
Thanks to Fred Pilot for this link and for pointing out that anybody who is strategically defaulting on their mortgage has already strategically defaulted on their HOA/condo assessments as well. The rocky times continue.