Housing: Could Strategic Default Turn Into a Full Blown Movement?

By now many people are aware that the housing sector is showing renewed signs of trouble.

In May, traditionally a time of the year when home purchasing activity picks up, both existing and new home sales tanked. And this is happening in spite of the fact that mortgage rates are at their lowest point since the 1950s.

Nearly one in four homeowners is "underwater" on their mortgage, meaning they owe more money than their home is worth. As detailed by the New York Times more and more homeowners are electing "strategic default", which is when a home owner quits making his/her mortgage payment even though s/he has the financial means to continue paying.