A majority of Americans believe it’s never ok for a homeowner to simply walk away from a mortgage, regardless of how much their property may have declined in value or other financial circumstances.

According to a new survey from the legal site FindLaw.com, 60 percent of those surveyed said it’s “never ok” for someone to simply stop paying their mortgage, a practice known as strategic default. Just over one-third – 34 percent – said it’s ok only if the homeowners is unable to make their monthly payment.   Of the rest, 3 percent said it’s ok for homeowners to walk away from a mortgage any time they want, while another 3 percent didn’t give an answer.   Stephanie Rahls, an attorney and editor with FindLaw.com, said it’s important for homeowners facing foreclosure or otherwise in serious financial difficulty to seek legal and financial advice before making any major decisions. She noted that major changes to a mortgage situation could also have unforeseen consequences in regard to taxes, credit worthiness, potential for lawsuits and more.   She noted there may also be options homeowners are unaware of.   “Various government programs and tax changes involving mortgages have been enacted since the beginning of the housing crisis,” Rahlfs said. “Combined with private programs and variations in state laws, it creates a complicated web of potential actions available to homeowners, who should carefully consider the benefits and drawbacks of their decisions.”   Breaking down the survey data revealed some interesting patterns. Older adults, those age 65 and above, were most accepting of the idea of strategic default, with only 47 percent saying it was never ok, nearly identical to the 46 percent who said it was all right if the homeowner could no longer afford the payments.   Those in the 35-44 year-old group, on the other hand, were least tolerant of the notion of walking away from a mortgage, with 68 percent saying it was never ok.   On a regional basis, those in the Northeast were most likely to reject strategic defaults (68 percent saying it was never ok), while those in the West were most accepting (52 percent said it was never ok). Significantly, western states such as California, Nevada and Arizona have had some of the nation’s steepest declines in home values and highest foreclosure rates, while the Northeast has weathered the housing downturn better than other parts of the nation.  

The findings were based on a telephone survey of 1,000 adults conducted March 3-6.

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