The strong relationships credit unions forge with their members may be enough to protect them from the most severe impacts of having large numbers of home owners walk away from their mortgages, credit union economists and executives say.
The phenomenon of larger numbers of home owners deciding to "strategically default" on their home loans has gained more attention in the media lately. A law professor at the University of Arizona released a paper suggesting that walking away from mortgages where home values have fallen drastically may be the best economic decision for some homeowners.
There is no current data about how widespread the phenomenon has become, but anecdotal reports, particularly in states hardest hit by the crisis in home prices, indicate it may be growing.
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