Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/whats-the-motivation-of-strate Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter What’s the Motivation of Strategic Defaulters? Economy May 17, 2010 9:55 AM EDT Question: Your pieces are my favorites, and I never miss one. You recently did one on real estate in Florida that raised a question At one point, you say, “Welsh says he stopped making payments six months ago, and has tried to renegotiate his mortgage, offering $150,000. The bank said no. Instead, the house will sell to someone else via foreclosure or a short sale…” My question: Did he stop making payments because he was unemployed and financially unable to do so? Or did he just decide he wasn’t putting any more money into a house worth less than its mortgage? BIG difference. The first elicits some sympathy. The second, not so much! Thanks, keep ‘em coming! Paul Solman: Jason Welsh was featured in a follow-up story from Cape Coral, Florida, on “strategic default.” He did indeed “decide he wasn’t putting any more money into a house worth less than its mortgage.” You can see that piece and much more from our reporting on the foreclosure crisis below. A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now
Question: Your pieces are my favorites, and I never miss one. You recently did one on real estate in Florida that raised a question At one point, you say, “Welsh says he stopped making payments six months ago, and has tried to renegotiate his mortgage, offering $150,000. The bank said no. Instead, the house will sell to someone else via foreclosure or a short sale…” My question: Did he stop making payments because he was unemployed and financially unable to do so? Or did he just decide he wasn’t putting any more money into a house worth less than its mortgage? BIG difference. The first elicits some sympathy. The second, not so much! Thanks, keep ‘em coming! Paul Solman: Jason Welsh was featured in a follow-up story from Cape Coral, Florida, on “strategic default.” He did indeed “decide he wasn’t putting any more money into a house worth less than its mortgage.” You can see that piece and much more from our reporting on the foreclosure crisis below. A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now