strategic default
- A deliberate choice to halt loan repayments by a borrower, usually when their property's mortgage exceeds its equity, despite being financially capable of continuing payments
- Following a major drop in property values, many homeowners considered strategic default as an option.
- Due to unanticipated market trends, the corporation considered a strategic default on their commercial building loans.
- Due to declining home equity, the family weighed the consequences of a strategic default.
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