

The "Strategic Default": Is it Socially Acceptable to walk away from your Loan
Morgan Stanley is handing a multibillion dollar portfolio of San Francisco Office Property back to the bank and single family REO is an epidemic. Is it now socially acceptable to walk away from your loan if you are under water?
Here is my spin and recent links on the subject http://TwitPWR.com/zYi/
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Comments (1)
Strategic default doesn't need to be "socially acceptable." If the lender loses money they should sue for a deficiency. If the loan is non-recourse they should shut up and take the collateral they agreed to. The system works just fine as-is.
Bryan Hancock, about 15 years ago