The statistics show that they are much more financially responsible than those who default on other types of loans.
It can totally make sense to default on a mortgage, particularly when you owe more on a mortgage than your home is worth.
NASDAQ.com says: Borrowers who defaulted on their mortgages during the recent recession turned out to be better credit risk than those who defaulted on several other types of loans.
Those who had only mortgage delinquencies on the credit records were more likely to stay current on new loans than those who had fallen behind on multiple smaller accounts, such as auto loans and credit cards. That’s according to the credit reporting bureau TransUnion, which released the results of the new study today.
In fact, borrowers with a mortgage delinquency were only half as likely to fall 60 days behind on a new auto loan or credit card as borrowers with multiple smaller delinquencies, according to the report. The difference was found to apply across the full range of credit scores.
“This recession was unique in that certain consumers who defaulted on mortgages would otherwise be good credit risks,” said Ezra Becker, a TransUnion research executive. “It appears their actions were driven more by difficult economic circumstances than by any inherent inability to manage debt.”
Read more: http://community.nasdaq.com/News/2011-05/defaulters-may-be-ok-credit-risks.aspx?storyid=77301#ixzz1NJzzxpCi