Incentive for strategic defaulters

[bargainman]

Interesting.. Finally someone is doing something to incentivize strategic defaulters instead of only trying to help the people at the bottom of the default barrel..  Probably not as good as what Bill Gross previously proposed, but interesting ideas...  A Wharton finance prof seems to be involved...

 

http://www.time.com/time/specials/packages/article/0,28804,2029497_2030629_2029798,00.html

 

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2595

http://www.inman.com/buyers-sellers/columnists/tomkelly/rebate-staying-current-underwater-mortgage

[ERICOPOLY]

We have laws that cleanse the borrower's record after seven years if they default on their loan.

 

Perhaps an exception can be made for strategic defaulters.  I would rather start with this before handing out money.