strategic default

Definition

An intentional default on mortgage payments by the borrower. This strategy is used when the value of the real estate is lower than the debt, thus the borrower prefers to renege on the debt rather than own a property with a low value. Borrowers than use this technique are often referred to as walkaways.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
strategic buyout Strategic Investment Fund