A report jointly prepared by the Experian credit reporting bureau and the Oliver Wyman consulting firm revealed that a significant percentage of mortgage borrowers who default on their mortgage loans continue to choose to do so.
The phenomenon, called "strategic default", has become one of the more lasting trademarks of the current mortgage crisis and appears poises to continue at least in the short to medium terms.
Borrowers who strategically default on their mortgage loans make the calculation that they would be better off financially if they stopped making mortgage payments on a home whose value has fallen to significantly less than the mortgage amount.
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