Housing crisis spawns mortgage market distrust, disdain, bitter desire to extract retributions

(10/8/2012) With many believing they've been taken to the cleaners by the mortgage market, 68 million Americans say they have right to retaliate, renege on their mortgage agreement and refuse to pay up.

They are mad as hell and don't want to take it anymore.

Tossing legal, ethical and moral considerations aside, one in three believe a strategic default is just fine and half of them know someone who already has walked away from their mortgage.

The latest survey on tossing the house keys in the circular file found moral indignation as a driving force and that might not bode well for a system based on trust and responsibility.

A recent survey of 1,026 U.S. adults, conducted online by JZ Analytics for ID Analytics found 32 percent believe homeowners should be able to strategically default on their mortgages without any consequences.

The survey also found that 28 million Americans (13 percent) would likely strategically default on a mortgage and 36 million Americans (17 percent) know someone who has strategically defaulted on a mortgage.

A strategic default occurs when a homeowner, who is financially able to make the mortgage payment, decides not to and allows the home to go into foreclosure, often because he or she is underwater, owing more on the home than the home is worth.

Millions of underwater homeowners are disenfranchised by the American Dream, believe they'll never regain the equity they lost in the housing crash and decide to just blow off their agreement to pay the mortgage - even if it means losing their home and giving their credit report a black eye.

John Zogby, senior analyst at JZ Analytics said, "If Americans carry on with that mindset, it will continue to cause problems as the economy undergoes a slow recovery. Our research into the consumer opinion of the economic crisis of 2008 found alarming results. What jumped out is how many Americans feel it is acceptable for homeowners to walk away from a mortgage and go into foreclosure."

Sold a bill of goods

For years during the housing boom, the mortgage market hooked consumers on a diet of toxic home loans that proved deadly for homeownership.

Racial minorities were especially targeted with subprime loans, even when they were qualified for more affordable mortgages.

• Even after the market crashed and lenders were sued and agreed to settle for billions - without admitting any wrongdoing - a financial industry in denial grew an institutionalized culture of foreclosure abuse.

• Reports reveal lenders continued forms of foreclosure abuse both during National Mortgage Settlement negotiations and, continued the practice this year, after lenders agreed to the settlement, according to the California Monitor, launched as California's watchdog for the national settlement.

• Creating a nation of twice- and thrice-victimized consumers, lenders continue to be charged with numerous counts of racial discrimination leaving select neighborhoods distressed with unkempt foreclosure properties.

"We commissioned this survey to get a stronger understanding of consumer sentiment surrounding the mortgage crisis/financial slowdown, in particular consumer credit behavior and identity fraud in our current economy," said Dr. Stephen Coggeshall, chief technology officer at ID Analytics.

What the study found was a new and troubling consumer mindset - if the banks can do it, so can we.

• It's okay to stretch the truth - 36 million Americans (17 percent) would exaggerate personal information to obtain credit.

• Poor credit shouldn't be a hindrance - 77 million Americans (36 percent) believe it's socially acceptable to have a poor credit score.

Sad times.



Other related articles:

Mortgage strike devised to leverage mortgage relief from lenders for underwater homeowners

BofA customer? You may have just won a second mortgage payoff!

Bank of America latest major lender to face REO-management discrimination charges

Ranks of underwater homeowners shrinking, boosting housing recovery

National Mortgage Settlement banks dole out $10.6 billion to needy homeowners

Dissecting Delinquencies: What the Decline in Delinquencies Means for the Housing Market

Infographic: Strategic defaulters rushing to beat mortgage debt relief deadline








Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

iPad for Mortgage Rates

Get the Updated and Improved Mortgage Rates App from ERATE.com

ERATE App - Current Mortgage Rates and Credit Cards
FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want